Markets rally on broad-based buying; Sensex over 58,600, Nifty 50 near 17,470; IT outperforms; TCS, Maruti, HCL Tech, Wipro top bulls

3 Jan 2022 , 09:48 AM

Indian markets kicked off the first trading session of 2022 on a positive note driven by broad-based buying across sectoral indices with IT and auto stocks outperforming. The domestic equities denied mixed Asian cues as some major markets were closed in the region.

Investors tapped equities in Indian markets ahead of major economic data. India’s Markit Manufacturing PMI numbers for December is set to be released today, while Markit Composite PMI and Services PMI data for the same month is scheduled to be released two days later. Also, Foreign exchange reserves for the week ended will be released on January 31.

Auto and metal stocks will be in focus amid their monthly sales and production data. IT stocks will also see major movements as major companies are set to announce their third-quarter results for FY22. Aviation stocks will also be in trend as jet fuel or ATF price has been increased by 2.75% on firming international oil prices.

At around 09.42 am, Sensex was trading at 58,637.89 higher by 384.07 points or 0.64%. The index has touched an intraday high of 58,671.92.

Nifty 50 performed at 17,466.95 up by 112.90 points or 0.65%. The index was near the day’s high of 17,478.60.

In terms of sectoral indices, on BSE, the IT index outperformed by rising nearly 520 points. Auto and Capital Goods index surged around 1% each, while Bankex index edged higher by 185 points.

Bulls on Sensex were – TCS (+2%) followed by Maruti Suzuki, HCL Tech, Wipro, Tech Mahindra, L&T, Asian Paint, Bajaj Finserv and Infosys surging by over 1% each.

Bears on Sensex were – IndusInd Bank, M&M, Titan, HUL and Dr Reddy’s Lab.

On the global front, Asian markets pared early gains and traded mixed. The Australian, mainland China and Japan markets are closed for the New Year holiday while the Hang Seng index erased early gains and were in the red after trading in debt-laden Evergrande Group were halted on the Hong Kong exchange with no immediate reason. The Hang Seng Properties index dived with major developer stocks like Country Garden and Sunac among others taking a beating.

South Korea’s Kospi and Taiex in Taiwan advanced.