Nifty ends above 17,650 mark; metal stocks outperform

5 Sep 2022 , 03:38 PM

The headline equity indices ended with decent gains on Monday. After opening tad below the 17,550 level, the Nifty witnessed significant buying demand and ended above the 17,650 mark. Shares across sectors advanced with metals, bank and financial gaining the most. As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 442.65 points or 0.75% to 59,245.98. The Nifty 50 index added 126.35 points or 0.72% to 17,665.80. In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index advanced 0.89%. The market breadth was strong. On the BSE, 2220 shares rose and 1345 shares fell. A total of 171 shares were unchanged. Mixed jobs data in the US coupled with surging gas prices in Europe after Russia shut a major gas exports pipeline weighed on investor sentiment. Economy: The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from Julys four-month low of 55.5 to 57.2 in August, highlighting a rebound in growth. The upturn was attributed to stronger gains in new business, ongoing improvements in demand, job creation and overtime work. Buzzing Index: The Nifty Metal index added 1.68% to 5,986.90. The index has added 1.84% in two sessions. Welspun Corp (up 4.93%), Hindalco Industries (up 3.41%), National Aluminium Company (up 3.05%), JSW Steel (up 2.94%) and Ratnamani Metals & Tubes (up 2.21%) were the top index gainers. Among the other gainers were APL Apollo Tubes (up 2.02%), Jindal Steel & Power (up 1.75%), Steel Authority of India (up 1.64%), Tata Steel (up 1.33%) and Vedanta (up 1.24%). Stocks in Spotlight: Angel One gained 0.82%. The brokerage company said that its client base climbed 81.9% to 11.18 million in August 2022 as against 6.15 million in August 2021. On a sequential basis, the companys client base rose by 4% month on month (MoM) from 10.75 million clients in July 2022. GMR Infrastructure shed 0.51%. The companys board of directors has approved raising of funds of up to Rs 6,000 crore in one or more tranche(s) through issue of securities. One 97 Communications fell 2.50%. The company, which operates under the Paytm brand, on Sunday denied any link with the merchants that are under the Enforcement Directorate scanner in the Chinese loan app case. The ED on Saturday said it has conducted raids at six premises of online payment gateways, such as Razorpay, Paytm and Cashfree in Bengaluru, over the alleged irregularities in instant app-based loans controlled by Chinese persons. Bharat Electronics (BEL) rose 0.94%. BEL has signed a MoU with Smiths Detection, a global leader in threat detection and security inspection technologies, for offering advanced, high-energy scanning systems to the Indian market. The MoU will leverage the high-end, technological capabilities of both the firms to meet Indias domestic security needs. Olectra Greentech advanced 2.38%. The company said that it has received letter of award (LoA) from one of the State Transport Corporations for 100 electric buses. Chalet Hotel lost 0.90%. The company and its wholly owned subsidiary viz. Chalet Airport Hotel Private Limited have executed the License Agreement with Delhi International Airport with regard to designing, developing, financing, operating, managing and maintaining of a terminal hotel at a site opposite to Terminal 3, at the IGI Airport, New Delhi. Trident added 3.14%. The company announced that Abhinav Gupta has tendered his resignation from the chief financial officer (CFO) and key managerial personnel position. Gupta was relieved from his services with effect from 3 September 2022 post working hours. Federal Bank rose 3.26%. The media reported that the bank is in preliminary talks with Kotak Mahindra Bank for a potential merger deal. Reacting to the media report claiming its merger with Kotak Mahindra Bank, Federal Bank clarified that the report is speculative in nature. Dixon Technologies (India) advanced 2.33%. The domestic LED TV manufacturer said that it is the first contract manufacturer in India to get the sub licensing rights relating to Android & Google TV. KPI Green Energy added 2.95%. The company informed about the setting up green hybrid capacities totalling 16.10 MW at Bhavnagar, under the Gujarat hybrid power policy 2018. The power producer said that the hybrid power project comprises of wind and solar capacity that would be developed at its Bhungar site in Mahuva at Bhavnagar, Gujarat. Global markets: European shares tumbled on Monday after Russia extended a halt on gas flows down the Nord Stream 1 pipeline to Europe, sparking worries over energy prices and growth and spurring governments to announce emergency measures. Asian stocks ended mostly lower today as investors digest the results of a private survey on Chinese services sector activity. Chinas Caixin Services Purchasing Managers Index came in at 55.0, compared with Julys print of 55.5. The au Jibun Bank Japan Services Purchasing Managers Index dropped to a seasonally adjusted 49.5 for August, lower than 50.3 in July. The marginal decline marks the first contraction in service sector business activity since March, S&P said in the report, citing the recent spike in Covid cases in the nation. US stocks closed lower on Friday, as early gains from a jobs report that showed a labor market that may be starting to loosen gave way to worries about the European gas crisis. American employers slowed down their hiring in August in the face of rising interest rates, high inflation and sluggish consumer spending. The US government reported on Friday that the economy added 315,000 jobs last month, down from 526,000 in July and below the average gain of the previous three months. The unemployment rate rose to 3.7%, from a half-century low of 3.5% in July. Meanwhile, the G-7 agreed to explore the prospect of imposing a ban on shipments of Russian oil above a certain price in June. The statement from the G-7 added that the price caps effectiveness and impact would be closely monitored and revisited as necessary. The G-7 price cap on Russian oil comes as Western economic powers seek to deplete Russias war chest. Powered by Capital Market – Live News