• Global equities were largely up amid low volumes on the first day of trading in 2023. Reliance, ICICI Bank, Tata Steel, Tata Motors, Infosys, ONGC and HDFC were the top gainers
Indian markets posted gains on the first trading day of 2023, supported by global cues, better-than-expected PMI readings and thin trading volumes. The BSE Sensex ended at 61,167.79, up 327.05 points (or 0.45%) and the Nifty 50 advanced 92.15 points (or 0.51%) to 18,197.45, riding on metal and media indices.
After falling in early trade, both Sensex and Nifty 50 gained momentum in the trading session. Reliance, ICICI Bank, Tata Steel, Tata Motors, Infosys, ONGC and HDFC were among the top gainers on Monday. Stocks ending in red included Hindustan Unilever, Nestle India, State Bank Of India, Bajaj Finance, Sun Pharma.
The Media Nifty closed at 6,886.65 points, gaining 2.43% in most of the stocks with green mark. SAIL, Hindustan Copper, MOIL, Jindal Stainless and Tata Steel were among the gainers.
Metal stocks gained as the Jefferies index gained on the easing of Covid restrictions in China. SAIL, Hindustan Copper, MOIL, Jindal Stainless and Tata Steel were among the gainers.
Nifty gained after a flat start on the first day of the year. Volume on NSE remained low as some participants were still on leave. Deepak Jasani, Head - Retail Research, HDFC Securities, said metal stocks gained as overseas brokerages picked up on easing of Covid restrictions in China.
The Smallcap index outperformed the Nifty even though the advance/decline ratio stood at 2.1:1.
Global equities were largely in lower volumes on the first day of trading in 2023 as traders assessed cheap valuations following last year's slump. US stock markets will be closed today for the New Year holiday.
Jasani said, "Nifty has attempted to recover well from the fall seen till December 23. It may now face resistance in the 18265-18346 band, while 18080 may offer support in the near term." "
Media Nifty gained 1.17% to close at 2,015.35 points, dragged by shares of Nazara Technologies, Network 18, TV 18 Broadcast, Hathway.
Bank Nifty ended with a gain of 216.65 points (+0.5%) led by strong performance from ICICI and Axis Bank.
On Monday, out of 3,788 scrip traded on the Bombay Stock Exchange, 2,306 advanced against 1,304 decline, while 178 scrips remained unchanged. Besides, 109 stocks hit a 52-week high as against 38 stocks hit a 52-week low, confirming the positive growth of the market.
The rupee depreciated heavily despite good growth in market indices. The rupee depreciated with the US dollar costing ₹82.76 (spot). Monday's fall of 0.08% was attributed to outflow by foreign investors and a surge in COVID-19 cases in China.
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas said, "Rising crude prices also weighed on the rupee as WTI crude closed above $80 a barrel on Friday. However, positive domestic equity markets and upbeat economic data supported the decline. India's manufacturing PMI rose to 57.8 in December, above estimates of 54.3 and 55.7 for the previous month."
Predicting the Indian Rupee trend in the near future, Chowdhury said, “We expect the Rupee to trade with a negative bias on risk-off sentiments as more and more countries are imposing curbs and restrictions on incoming travelers from China . The US dollar is also expected to see some renewed safe haven demand which could put pressure on the rupee. USDINR spot price is expected to trade in the range of ₹82.30 to ₹83.30."
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