Markets rally amid mixed global cues; Nifty above 17,400 led by consumer durables, banking stocks

23 Mar 2022 , 09:43 AM

Indian markets paused their previous losses and picked momentum in the early deals of Wednesday with benchmark Sensex nearing as much as 58,450-mark and Nifty 50 almost earmarking 17,450-mak before correcting.

Domestic equities were driven by a rally in banking and financial stocks offsetting selloff in auto, metal and oil & gas stocks. Also, pharma, realty and consumer durables stocks contributed to the gains substantially.

Markets at home shrugged off mixed global cues as traders observe global concerns where the US 10-year yield is now at 2.42%. As per  experts, rising bond yields and US Fed policies might push the US economy into recession.

Also, rating agency Fitch slashed India’s GDP forecast for the next fiscal to 8.5% from 10.3%, citing inflationary pressure and rising energy prices. Meanwhile, the Central Government hiked petrol, diesel prices by 80 paise for second day in a row across the country. 

At around 09:45 AM, Sensex was trading 58,358.08 rising by 368.78 points or 0.64%. The benchmark has touched an intraday high of 58,416.56.

Nifty 50 performed at 17,423 up by 107.50 points or 0.62%. The benchmark has clocked an intraday high of 17,442.40.

In terms of sectoral indices, on NSE, the banking index surged over 450 points or 1.2%. The Consumer Durables index advanced 300 points. The Metal and Oil & Gas index dropped nearly 165 points each.

Top Bulls on Nifty 50 were – Hindalco, Dr Reddy’s, SBI Life, SBI, Axis Bank, Bajaj Finance, Bajaj Finserv, HDFC and ICICI Bank.

Top Bears on Nifty 50 were – Coal India, Bharti Airtel, Britannia, ITC and BPCL.

Today, TCS stocks in focus as its Rs18,000 crore buyback subscribed 5.5 times a day before close. Tata group flagship firm is buying back 40 mn shares, or 1.08% of its equity at Rs4,500 a share. That’s a premium of over 21% to CMP.

Globally, US markets see a super follow-through rally led by technology stocks with Nasdaq gaining over 270 points & crossing 14000. Geopolitical risk sees oil prices remaining elevated even though they see profit booking from recent highs.

Further, Asian markets opened strong after the rally on Wall Street with the Japanese Nikkei trading higher by almost 600 points. Most Asian markets have seen excellent pullbacks this week after the strong drubbing of last month. Chinese stocks are seeing institutional buying as Government steps in to stem the fall.