Indian stock benchmarks rose on Tuesday, December 28, following optimistic global signals in the absence of domestic triggers. The Sensex rose 477.24 points or 0.83 percent higher at 57,897.48, while the Nifty 50 index rose 147 points or 0.86 to settle at 17233.25. Asian Paints, Sun Pharma, UltraTech Cement, Mahindra & Mahindra (M&M) were among the top winners. On the other hand, IndusInd Bank, Power Grid Corporation of India were the biggest pullers.
Nearly all sector indices ended in positive territory. Bank Nifty rose 0.36 percent and the Nifty Auto Index rose 1.34 percent. Mid and small cap stocks traded positively as the Nifty Midcap 100 Index rose 1.18 percent and the Nifty Smallcap 100 Index rose 1.55 percent.
On a stock-specific front, Supriya Lifescience stocks made a strong debut today amid positive market sentiment. Shares of the active pharmaceutical ingredient (API) manufacturer opened on the BSE at ₹425 each – a 55.1 percent premium or Rs 151 above the issue price of Rs 274.
“The domestic market is drawing strength from the rebound in global equity indices, which have risen steadily in recent sessions after sharp corrections to concerns about the Omicron variant, likely rate hikes in major advanced economies and rising inflation worldwide.
The trading setup suggests a rapid intraday correction if the Nifty trades below 17180, and below the same reading, the correction wave could rise to 17100-17160 levels,” said Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.
Meanwhile, India’s benchmark 10-year bond yield rose to its highest level since April last year, as investors became more cautious about its heavy government debt pipeline, the rise in global oil prices and the lack of direct support from the central bank.
Traders said the absence of a new 10-year bond as part of the papers for sale at Friday’s upcoming debt auction also weighed on sentiment as shares outstanding on the existing benchmark are already Rs 1.48 trillion.
In global markets, shares in Europe and Asia rose Tuesday, helped by another record day on Wall Street. Globally, oil prices expanded their gains on Tuesday, with prices trading near a month-long high from the previous day, in hopes that the Omicron coronavirus variant will have a limited impact on fuel demand.
In the foreign exchange market, the rupee continued its gains for the ninth consecutive trading session, with 34 paise to close at 74.66 (provisional) against the US dollar, tracking positive domestic stocks amid increasing demand for risky assets.
At home, the Delhi government announced a ”Level 1” or ”Yellow Alert” as cases continue to rise in the national capital amid the Omicron tribal threat. As part of the new guidelines, private offices in Delhi will operate at 50 percent, malls and shops will open odd-even and a daily curfew will be imposed between 10pm and 5am. The restrictions follow yesterday Delhi’s biggest one-day spike in infections in six months, with 331 new cases.