Sensex, Nifty50 close higher as metals surge; Tata Steel, Hindalco Industries top gainers

• India’s benchmark indices Sensex and Nifty50 brushed a weak opening on the first day of 2023.
• The 30-stock Sensex ended 0.54% or 327 points higher at 61,167, while the 50-stock Nifty50 closed up 0.51% or 91 points at 18,197.
• The uptick was led by heavyweights like Tata Steel, Tata Motors, ICICI Bank and others.

India’s benchmark indices Sensex and Nifty50 closed on a positive note on the first day of 2023 gaining 0.5% on Monday. The uptick was led by a surge in metals and heavyweights like Reliance Industries, Infosys, ICICI Bank and Axis Bank.

The 30-stock Sensex ended 0.54% or 327 points higher at 61,167, while the 50-stock Nifty50 closed up 0.51% or 91 points at 18,197.

Analysts say the equity markets may remain volatile as investors will factor in expectations from the upcoming earnings season and Union Budget.

“Markets gained confidence in the afternoon trades after European indices advanced sharply in their early trades. Local traders lapped up metals, realty and banking shares, which had faced relentless selling in the last week's sell-off. However, markets may face strong bouts of volatility as investors brace for earnings season and the upcoming Union Budget,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.
Source: NSE, Nifty50 on January 2, 2023

Among sectoral indices, metal was the top gainer at 2.4% followed by media (1.2%), realty (1%) and PSU Bank (0.7%).

Metals stocks rallied after global brokerage Jefferies’ upbeat comments on the prospects of Indian metal company after a year of cautious view as China has started to ease Covid-19 policy that will support the reeling sector.

Besides, the brokerage has mentioned Tata Steel as its top pick followed by Hindalco Industries.

Key amongst the market movers this week will be the Covid spread in China and the minutes of the US Fed’s meeting.

Earlier on Friday last week, Sensex and Nifty50 closed 0.5% lower at 60,840 and 18,105 points, respectively, capping off the year 2022 with gains of 2.8% and 2.7%, respectively.

The movement of stocks on the BSE also ended on a positive note as 2,306 stocks gained while 1,304 declined.

Crude oil prices edged up to post the second consecutive annual gain in a year rocked by the Russia-Ukraine war and the fallout of the economic sanctions on Russia by the West. Brent crude oil prices hovered around $86 per barrel on Monday.

Meanwhile, US markets were closed on Monday on account of New Year’s holiday.


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