- The 30-stock
Sensex closed 468 points higher at 61,806 while theNifty50 ended 151 higher at 18,420. - Driving this bounce back were stocks in the auto, FMCG and metals sectors. In the 50-stock Nifty50 index, only eight stocks ended lower.
- Meanwhile,
IT stocks saw selling after Dublin-based tech major Accenture’s guidance indicated a slowdown in the tech sector. - On the BSE, 2,117 stocks advanced while 1,501 ended lower on Monday.
Driving this bounce back were stocks in the auto, FMCG and metals sectors – the Nifty auto index was up 1.59%, FMCG index rose 1.46% and metals index jumped 1.27%. On the 50-stock Nifty50 index, only eight stocks ended lower.
The 30-stock Sensex closed 468 points higher at 61,806 while the Nifty50 ended 151 points higher at 18,420.
"Optimism in European markets and short covering helped local benchmarks stage a smart bounce back even as other Asian market peers languished in negative territory. Despite the recovery, investors are lacking confidence after the recent US Federal Reserve's indication of more rate hikes in the coming year,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.
Meanwhile, IT stocks saw selling after Dublin-based tech major Accenture’s guidance indicated a slowdown in the tech sector. The company maintained its FY23 revenue guidance of 8-11% growth in constant currency terms.
Adani Ports and SEZ (4.05%), Adani Enterprises (3.02%), M&M (2.99%), Eicher Motors (2.75%) and Power Grid Corporation of India (2.65%) were the top five gainers on the Nifty50.
Tracking weakness in the US dollar, the rupee closed the day with a 17 paise gain at 82.7.
In the broader Nifty500 universe, these were the top gainers and losers:
Insurance company stocks have been rising since the last couple of sessions as the finance ministry has proposed amendments to the existing IRDAI Act, 1999 that would allow insurance companies to sell financial products including life, general and health through a single license, market analysts said.
“Insurance stocks have rallied since investors got excited after the government proposed a common license to sell all insurance products. There are also expectations that some public sector general insurance companies that are not doing well or are not getting proper valuations might be merged with LIC,” said Deepak Jasani, head of retail research at HDFC Securities.
Asian stocks extend losses
Asian markets continued to extend losses from last week over concerns about rising interest rates, a surge in Covid-19 cases in China and a potential recession in 2023. China’s Shanghai SE Index closed 1.92% lower followed by the Nikkei 225 that fell 1.05%. The Taiwan SE Weighted Index was down 0.66% and the Hang Seng closed 0.50% lower.
On the BSE, 2,117 stocks advanced while 1,501 ended lower on Monday.
“We’ve been seeing this trend that select heavyweights come to rescue the index during the corrective phase and it’s no different this time. A decisive close above 18,500 in Nifty could further fuel the rebound, else profit taking may resume,” said Ajit Mishra, VP - technical research, Religare Broking.
Brent crude oil prices rose 0.43% to $79.39 after China announced plans to relax Covid norms to boost its economy, which could result in an increase in demand.
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