Nifty, Sensex begin the new year on a positive note; media, metal stocks shine

Both the Sensex and the Nifty 50 gained momentum in the trading session after lower openings. Monday saw Reliance, ICICI Bank, Tata Steel, Tata Motors, Infosys, ONGC and HDFC among top gainers. The stocks that ended in red included Hindustan Unilever, Nestle India, State Bank of India, Bajaj Finance, Sun Pharma.

Media Nifty closed at 6,886.65 points registering a rise of 2.43% majority of stocks in green. SAIL, Hindustan Copper, MOIL, Jindal Stainless and Tata Steel were among the big gainers.

Metals stocks rose as Jefferies turned bullish on the index due to easing of Covid curbs in China. SAIL, Hindustan Copper, MOIL, Jindal Stainless and Tata Steel were among the big gainers.

“Nifty gained on the first day of the year after a flat opening. Volumes on the NSE continued to be on the lower side as some participants are still on holiday. Metals stocks rose as a foreign brokerage turned bullish on metal stocks due to easing of Covid curbs in China,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

Smallcap index outperformed the Nifty even as the advance decline ratio rose to 2.1:1.

Global equities were largely up on the first day of trading in 2023 amid thin volumes as traders assessed cheaper valuations following last year’s slump. US stock markets will be closed today in observance of the New Year’s Day holiday.

“Nifty has attempted to recover well from the fall seen till December 23. It could now face resistance in the 18265-18346 band while 18080 could offer support in the near term,” said Jasani.

Pulled up by stocks of Nazara Technologies, Network18, TV18 Broadcast, Hathway, the Media Nifty recorded a rise of 1.17% closing at 2,015.35 points.

Bank Nifty closed with a rise of 216.65 points (+0.5%) with a good performances from ICICI and Axis banks.

Out of the 3,788 stocks traded on Bombay Stock Exchange on Monday, there were 2,306 advances against 1,304 declines, while 178 stocks remained unchanged. Moreover, affirming the positive growth of the market, 109 stocks recorded 52-week high against 38 stocks st 52-week low. 

Despite decent rise in market indices, Rupee saw a substantial fall. Rupee registered depreciation with a US Dollar costing ₹82.76 (spot). The fall of 0.08% on Monday was attributed to outflows by foreign investors and concerns over surge in COVID-19 cases in China.

Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas said, “Rising crude oil prices also weighed on Rupee as WTI crude closed above $80/barrel on Friday. However, positive domestic equity markets and upbeat economic data cushioned the downside. India’s manufacturing PMI rose to 57.8 in December topping estimates of 54.3 and a reading of 55.7 in the previous month.”

Choudhary went on to say while predicting Indian Rupee’s trend in near future, “We expect Rupee to trade with a negative bias on risk-off sentiments as more and more countries are imposing curbs and restrictions on inbound passengers from China. US Dollar is also expected to see some renewed safe haven demand which may put pressure on Rupee. USDINR spot price is expected to trade in a range of ₹82.30 to ₹83.30.”

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