scorecardresearchMarket Wrap: Sensex, Nifty jump on gains in index heavyweights; investors

Market Wrap: Sensex, Nifty jump on gains in index heavyweights; investors richer by 1 lakh crore

Updated: 17 Jan 2023, 04:20 PM IST

Sensex ended 563 points, or 0.94 percent, higher at 60,655.72 while the Nifty closed at 18,053.30, up 158 points, or 0.89 percent.

Sensex, Nifty ended in the green on January 17.

Sensex, Nifty ended in the green on January 17.

Market benchmarks the Sensex and the Nifty ended in the green on January 17 led by gains in shares of index heavyweights such as Reliance Industries, HDFC twins and Larsen & Toubro.

Global cues were mostly weak after China reported weak fourth-quarter economic data, raising concern over a global economic slowdown.

As reported by Reuters, "The world's second-biggest economy grew 2.9 percent in the fourth quarter of last year, beating expectations but underscoring the toll exacted by Beijing's stringent zero-Covid policy."

However, despite weak global cues Sensex ended 563 points, or 0.94 percent, higher at 60,655.72 while the Nifty closed at 18,053.30, up 158 points, or 0.89 percent.

Mid and smallcaps underperformed, ending in the red. The BSE Midcap index slipped 0.06 percent while the Smallcap index fell 0.13 percent.

The overall market capitalisation of BSE-listed firms rose to 281.9 lakh crore from 280.7 lakh crore in the previous session, making investors richer by 1.2 lakh crore in a single session.

Crude oil prices traded with a mild uptick. Brent Crude traded near $85 per barrel. The rupee slipped 15 paise to close at 81.76 per dollar.

More than 100 stocks, including Larsen & Toubro, Mahindra CIE Automotive, Jindal Stainless (Hisar), IDFC, Anant Raj and Anand Rathi Wealth, hit their 52-week highs in intraday trade on BSE.

Top Sensex gainers: Shares of Larsen & Toubro, Hindustan Unilever, HCL Tech, HDFC Bank, HDFC and Reliance Industries ended as the top gainers in the Sensex index.

Top Sensex losers: Shares of SBI, Bajaj Finserv, IndusInd Bank, Wipro, Tata Steel and Bajaj Finance ended as the top losers in the Sensex index.

Sectoral picture

A majority of sectors ended with gains, led by Nifty FMCG, Realty and Oil and Gas indices which rose over a percent each.

On the flip side, Nifty PSU Bank fell 1.84 percent, followed by Nifty Media which fell 0.86 percent. Nifty Consumer Durables, Pharma and Healthcare indices ended with nominal losses.

Experts' views on markets

According to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, the Indian market rallied because it missed the recent rally in the global markets.

"Markets were extremely lacklustre with a negative bias in the last few sessions and global indices were witnessing an upward bias due to hopes of demand revival following the reopening of China and cooling inflation data in the US. Indian markets rallied back sharply as we had missed the recent upsurge, although the undertone remains cautious to negative bias," said Chouhan.

As per Vinod Nair, Head of Research at Geojit Financial Services, "The domestic market is attempting to gain, in comparison to its weak year-to-date (YTD) performance, which was caused in anticipation of a soft Q3 result and Union Budget."

Nair said that given the positive undercurrents, the trend should continue in the short term. However, a lot will depend on the second line of Q3 results, the Budget outcome, and the Fed policy statement.

Technical views by experts

Rupak De, Senior Technical Analyst at LKP Securities pointed out that the benchmark Nifty has given a falling wedge breakout on the daily chart, suggesting a rise in optimism.

"Momentum indicator RSI has indicated a falling trendline breakout. The current technical setup suggests near-term strength, which may take the Nifty towards 18,250–18,270. On the lower end, support is visible at 17,850," said De.

Jatin Gedia a technical research analyst at Sharekhan by BNP Paribas underscored Nifty managed to close above the 20-day moving average (18,035) which is a sign of strength. The daily and hourly momentum indicator has a positive crossover which is a buy signal.

"All parameters are suggesting a sharp up-move over the next few trading sessions. In terms of levels, 17,880 – 17,850 will act as a crucial support zone while 18,280 – 18,300 will act as an immediate hurdle zone for the Nifty," said Gedia.

Key market data

Active stocks
Some stocks that hit their 52-week highs.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.

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First Published: 17 Jan 2023, 03:31 PM IST