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Tag: Sensex

  • Sensex climbs 696 points, Nifty ends at 17,780 as Budget cheer continues; banks, financial stocks gain

    The frontline equity indices on the BSE and National Stock Exchange (NSE) settled higher for the third consecutive session, closing with over 1.1 per cent gains on Wednesday as the post-Budget rally continued for the second session with intense buying in banking and financial stocks amid supportive global cues.

    The S&P BSE Sensex surged 695.76 points (1.18 per cent) to end at 59,558.33 while the Nifty 50 rose 203.15 points (1.16 per cent) to settle at 17,780.00. Both the indices had opened over 0.5 per cent higher earlier in the day and extended their gains as the trade progressed.

    On the Sensex pack, IndusInd Bank and Bajaj Finserv were the top gainers of the day ending with over 5 per cent gains. They were followed by HCL Technologes, Bajaj Finance, Kotak Mahindra Bank, Axis Bank, Dr. Reddy’s Laboratories, HDFC Bank and Wipro. On the other hand, Tech Mahindra, Nestle India, Ultratech Cement, Maruti Suzuki India, Larsen & Toubro (L&T) and Sun Pharamaceutical Industries were the biggest laggards.

  • Dalal Street cheers Union Budget as Sensex climbs 848 points, Nifty settles at 17,577

    The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended nearly 1.5 per cent higher following a volatile session of trade on the Budget day as market participants reacted positively to the big infrastructure boost in the Budget 2022 delivered by Finance Minister Nirmala Sitharaman.

    The S&P BSE Sensex rose 848.40 points (1.46 per cent) to settle at 58,862.57 while the Nifty 50 climbed 237.00 points (1.37 per cent) to end at 17,576.85. Earlier in the day both the indices opened over 0.8 per cent higher and rose around 1.7 per cent with the Sensex hitting a high of 59,032.20 and Nifty touching 17,622.40 during the FM’s budget speech.

  • Sensex down 4,000 points: What should mutual fund investors do?

    The year 2022 started on a volatile note with capital markets across asset classes witnessing a sharp correction amid investor concerns over tighter monetary policy settings in 2022 and geopolitical tensions. The benchmark index BSE Sensex has fallen over 3,000 points in the last 15 days, which is in line with the fall in global equity markets seen during the month. From its 52-week high levels, the index is down by 4,000 points, at 58,000. The expectations and uncertainty surrounding the Union Budget also led to volatility in equity markets. 

    Midcap and small caps have witnessed higher volatility in the last few months after having outperformed in the last two years. Year-to-date, mid cap mutual funds on an average have fallen by 2.5% and small cap funds have gone down by slightly over 2%. In fact, all equity mutual fund categories are in red YTD, except for banking and PSU funds.

    Technology funds, after remaining the best performers for a long duration, have taken the maximum hit of an average 12% YTD, followed by pharma sector schemes (-8.5%) and international schemes (-7.5%). Large cap funds, flexi cap funds and large & mid cap funds have plummeted by little over 2%.

    Investors should consider this fall as an opportunity to add more investments. In general, a 10% correction is an attractive enough “dip” to follow the time and tested “buy on dips” allocation strategy, says Sachin Jain, research analyst, ICICI Securities. “Investors may, therefore, allocate some lumpsum amount at current levels apart from their regular SIPs,” he adds.

    For the large cap segment, as per Rushabh Desai, founder of Rupee With Rushabh Investment Service, corrections anywhere between 10% and15% and for the mid and small cap segments, 15-25%, are considered to be decent correction pockets. However, even with the current correction and the company earnings prices and valuations in many segments in the equity markets remains high or expensive. Also, with the fear of new Covid-19 variants, supply chain disruption, high inflation, liquidity tightening and normalisation of policy rates (rate hikes) process etc. markets will remain volatile especially if company earnings don’t outperform, he explains. Thus, 2022 is the year to be extra cautious.

    For lumpsum investors who have investable amount, Desai suggests waiting for a decent and a deeper correction pocket before deploying their money. SIP investors should continue their investments and need not worry. Correction pockets should be looked at as an opportunity to invest for the long term.

    “This is a good time to assess your overall portfolio and reallocate your capital to schemes where the valuations are comfortable,” says Divam Sharma, co-founder of Green Portfolio, a SEBI-registered portfolio management service. He recommends value funds to be preferred over growth funds in the current markets and believes that IPO and start-up related funds should be avoided for now.

  • Sensex reclaims 60,000 mark; FPI buying, macroeconomic data buoy sentiment

    The Sensex reclaimed the 60,000 mark after seven weeks, despite rising Covid-19 cases, as the benchmark indices closed higher for the fourth straight session on Wednesday.

    Inflows from foreign portfolio investors (FPIs), expectations of good quarterly results, and optimism triggered by positive macroeconomic numbers enthused investors. The Sensex gained 367 points, or 0.6 per cent, to close at 60,223, while the Nifty rose 120 points to end the session at 17,925 cent.

    After being net sellers for about three months, FPIs have again turned net buyers since the beginning of this year. Analysts said FPIs had become net buyers because India had managed to keep Omicron under reasonable control so far, and that there was still hope for economic revival remaining unaffected. On Wednesday, FPIs bought shares worth Rs 336.8 crore, provisional data from the exchanges showed.

    “FPIs tend to buy in a concentrated manner. That’s the reason the market is showing resilience. The positives have been factored including the revival of the economy. Valuations don’t stand out. India has dealt with the Omicron variant slightly better than others. If the Omicron crisis does not warrant a strict lockdown, economic performance could continue. It’s a relative play as of now,” said U R Bhat, co-founder, Alphaniti Fintech.

    “In December itself, there was some impact of Omicron, but still GST (goods and services tax) collections have been reasonably good. It is possible to argue that the economy is quite resilient,” added Bhat.

    However, some analysts said concerns about the pandemic, rate hikes, and inflation could weigh on the markets in the days to come. Amid surging Covid-19 cases, weekend curfew has been imposed on the national capital, and the mayor of financial capital Mumbai has said tighter restrictions might be necessitated if cases continue to rise. Hong Kong on Wednesday announced flight bans from eight countries, including India, and tighter restrictions on public gatherings.

    Moreover, the US Federal Reserve is moving ahead with its plans to withdraw its bond purchases and hike interest rates at a much faster pace than expected.

    “The market trend might be volatile in the near term because of potential risk from the Omicron variant, upcoming Budget, and fragile global cues. In the long run, strong earnings delivery along with positive macroeconomic data would hold the key to drive the markets upwards,” said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services.

    The market breadth was slightly positive, with 1,786 stocks gaining and 1,606 declining on the BSE. As many as 527 stocks were locked in the upper circuit, and 432 hit their 52-week highs. Close to two-thirds of the Sensex constituents gained. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Bajaj Finance contributed the most to the index gains, rising 2.3 per cent, 1.9 per cent, 3.7 per cent, and 4.4 per cent, respectively. Banking stocks gained the most and its sectoral index gained 2.4 per cent on the BSE.

  • Top sectors to invest in 2022

    After ending the calendar year 2021 with a gain of 22 per cent on the Sensex and 24 per cent on the Nifty, red flags are now up on the Street with analysts suggesting investors tread carefully as the markets face multiple headwinds – both from domestic and global factors – which can keep them choppy in the year ahead. What could cap the market upside at least in the short-term is the fast-spreading Covid variant – Omicron – that has already seen several states adopt a precautionary approach. That said, analysts at Morgan Stanley, for instance, expect the emerging markets, including India, to muddle through most part of 2022 amid rich valuations.

    Despite downgrading India, the global research and brokerage house remains ‘structurally bullish’ on Indian equities and is looking for stock-level opportunities to hold exposure. Jonathan F Garner, chief Asia and emerging market strategist at Morgan Stanley says, EM equities will continue to struggle next year, with only 3 per cent upside to their December 2022 target. According to Credit Suisse, earnings will be the key driver for equity returns. Sectors that lagged the global recovery from the pandemic shock to emerge as bright spots alongside industries that benefit from secular growth trends. Other analysts, too, echo the same view and suggest stock selection will be key for investors to beat index returns. So which sectors are likely to do well in 2022?A similar sentiment is echoed by those at ICICI Securities, who expect the IT sector to lead the rally, supported by cyclicals like capital goods and BFSI. Herald van der Linde, head of equity strategy for Asia Pacific at HSBC, however, suggests staying away from real estate, auto components and sectors that have regulatory uncertainty like PSU banks and utilities. Over the medium-term, however, the market direction will be guided by a slew of domestic factors such as the upcoming result season for the quarter ended December 2021, expectations from the Union Budget that is likely to be presented on February 1.

  • Top sectors to invest in 2022

    After ending the calendar year 2021 with a gain of 22 per cent on the Sensex and 24 per cent on the Nifty, red flags are now up on the Street with analysts suggesting investors tread carefully as the markets face multiple headwinds – both from domestic and global factors – which can keep them choppy in the year ahead. What could cap the market upside at least in the short-term is the fast-spreading Covid variant – Omicron – that has already seen several states adopt a precautionary approach. That said, analysts at Morgan Stanley, for instance, expect the emerging markets, including India, to muddle through most part of 2022 amid rich valuations.

    Despite downgrading India, the global research and brokerage house remains ‘structurally bullish’ on Indian equities and is looking for stock-level opportunities to hold exposure.Jonathan F Garner, chief Asia and emerging market strategist at Morgan Stanley says, EM equities will continue to struggle next year, with only 3 per cent upside to their December 2022 target.According to Credit Suisse, earnings will be the key driver for equity returns. Sectors that lagged the global recovery from the pandemic shock to emerge as bright spots alongside industries that benefit from secular growth trends.Other analysts, too, echo the same view and suggest stock selection will be key for investors to beat index returns.So which sectors are likely to do well in 2022?A similar sentiment is echoed by those at ICICI Securities, who expect the IT sector to lead the rally, supported by cyclicals like capital goods and BFSI.Herald van der Linde, head of equity strategy for Asia Pacific at HSBC, however, suggests staying away from real estate, auto components and sectors that have regulatory uncertainty like PSU banks and utilities.Over the medium-term, however, the market direction will be guided by a slew of domestic factors such as the upcoming result season for the quarter ended December 2021, expectations from the Union Budget that is likely to be presented on February 1.