Markets rally on broad-based buying; Sensex over 60,100, Nifty 50 just shy of 17,900; Bank outperforms; RIL, TCS, IndusInd, HDFC Bank, SBI, ICICI Bank drive

7 Jan 2022 , 10:20 AM

A broad-based buying lifted Indian benchmarks on Friday’s early trading session with Sensex reclaiming over 60,000-mark and Nifty 50 nearing 17,900-level. The domestic equities picked up pace despite volatility in global cues. Banking stocks outperformed, while substantial gains were added by IT, consumer durables, oil & gas and energy stocks. Large-cap stocks were major movers of the day. 

Notably, India has breached over 1.1 lakh mark in Covid cases with the Omicron variant rising rapidly which will influence markets sentiments going forward. Investors are also gearing up for the onset of quarterly earnings ending December 31, 2021 (Q3FY22).

At around 10.18 am, Sensex is trading at 60,102.56 higher by 500.72 points or 0.84%. The index has touched an intraday high of 60,122.07.

Nifty 50 performed at 17,893.30 up by 147.40 points or 0.83%. The index has touched an intraday high of 17,898.70.

In terms of sectoral indices, on BSE, the Bankex index climbed over 675 points, while the IT and Consumer Durables index jumped nearly 320 points and 285 points. The Oil & Gas climbed nearly 190 points.

Bulls on Sensex were – ICICI Bank, Wipro, SBI, HDFC Bank, IndusInd Bank, Asian Paint, Tech Mahindra, Reliance Industries, Kotak Bank, TCS and Axis Bank advancing between 1-2%.

Bears on Sensex were – HDFC, Bajaj Finance, Bajaj Finserv, Dr Reddy’s Lab and Titan.

In the opening, Asian markets traded mixed as the Japanese ‘Nikkei’ had fallen over 800 points yesterday with sentiment turning weak after the Federal Reserve indicated higher rates by end-March. The Hang Seng reacted to lockdown concerns as ‘Omicron’ cases worldwide rose rapidly.

Overnight, on Wall Street, US stocks see high volatility as higher yields and Federal Reserve minutes sees stocks lose ground in early trade for 2nd day running. Bond yields spiked to 1.73% which sees technology stocks see profit booking, however, expect both sided moves as Nasdaq had git oversold yesterday. The US$ index also sees buying to hit 96.33, which is a 1-month high.