Sensex rises 198 pts, Nifty settles above 17,500 mark; metal stocks zoom

Domestic equity indices snapped four day losing streak and ended with decent gains on Tuesday. The Nifty managed to close a tad above 17,500 level after hitting day’s low of 17,216.10 in early trade. All the sectoral indices ended in the green with metal, PSU banks and realty stocks gaining the most.

The barometer index, the S&P BSE Sensex, rose 198.44 points or 0.34% at 58,664.33. The Nifty 50 index gained 86.80 points or 0.50% at 17,503.35.

“Domestic equities clawed its way out of the recent downslide boosted by metal, PSU bank and pharma stocks with mid and small caps outperforming the benchmark indices. US markets witnessed a late sell-off yesterday despite the re-nomination of Jerome Powell as the Fed chair. Oil and gas indices remained under pressure amid reports of the US releasing its emergency oil reserves to keep the rising crude oil prices under control. The Telecom sector was in focus today as the sector majors initiated rate hike which will enhance profitability,” said Vinod Nair, Head of Research at Geojit Financial Services.

Bharti Airtel (up 2.35%), Larsen & Toubro (up 1.28%), Kotak Mahindra Bank (up 1.27%) and Reliance Industries (up 0.96%) boosted the indices.

The broader market outperformed the main indices. The S&P BSE MidCap index added 1.61% while the S&P BSE SmallCap index advanced 1.81%.

The market breadth was strong. On the BSE, 2,428 shares rose and 825 shares fell. A total of 162 shares were unchanged.

The NSE’s India VIX, a gauge of market’s expectation of volatility over the near term, advanced 2.82% at 18.015.

Buzzing index

The Nifty Metal index rose 3.30% to 5,600.40. The index lost 5.36% in the past five trading session.

Vedanta (up 6.27%), NMDC (up 4.65%), JSW Steel (up 4%), Coal India (up 3.95%), Hindustan Copper (up 3.94%), SAIL (up 3.63%), Jindal Steel & Power (up 3.39%), NALCO (up 3.23%), Hindustan Zinc (up 2.56%), Tata Steel (up 2.15%), Adani Enterprise (up 1.98%), Hindalco Industries (up 1.98%), APL Apollo Tubes (up 1.37%), Welspun Corp (up 1.35%) and Ratnamani Metals & Tubes (up 0.92%) advanced.

Economy

SBI Research has upgraded India’s GDP growth projection for financial year 2022 to the range of 9.3%-9.6% from its earlier estimates of 8.5%-9%. The revised GDP estimate of SBI Research is in-line with RBI’s projection of 9.5% GDP growth for the current fiscal year.

The projection comes as the country recorded only 11% increase in COVID-19 cases during the July-September quarter of 2021, second-lowest among the top 15 most affected countries

Mentioning reasons behind its revised estimates, SBI Research said that India remained unscathed in Quarter 3 from the global situation, which is marred by supply disruptions, stubborn inflation and surges of infections during Q3 2021.

New listing

Shares of Latent View Analytics settled at Rs 488.60 on the BSE, a premium of 148.02% compared with the initial public offer (IPO) price of Rs 197.

The scrip was listed at Rs 530, a premium of 169.04% to the issue price. The scrip has hit a high of Rs 548.75 and a low of Rs 462 in the trading session. Over 20.73 lakh shares of the company changed hands in the counter on the BSE.

The IPO of Latent View Analytics was subscribed 326.49 times. The issue opened for bidding on 10 November 2021 and it closed on 12 November 2021. The price band of the IPO was fixed at Rs 190-197.

Global markets

European stocks declined across the board on Tuesday, as markets monitored a COVID-19 surge and awaited the latest purchasing manager’s index (PMI) data for the euro zone.

Asian stocks ended on a mixed note on Tuesday as investors watched for market reaction to U.S. President Joe Biden picking Jerome Powell for a second term as Federal Reserve chair. Markets in Japan were closed on Tuesday for a holiday.