Value buying lifts equity indices, IT stocks rise


New Delhi, Nov 29 (IANS): Value buying as well as expectations of a robust Q2FY22 GDP growth numbers lifted India's key equity indices -- S&P BSE sensex and NSE Nifty50 -- on Monday.

The two indices made marginally gains after an early morning sell-off which was triggered by the fears of the Omicron variant of coronavirus. The indices had opened on a lower mote and soon after made an intra-day bottom.

Globally, Asian stock markets fell further on Monday after the Omicron variant was found in more countries and governments imposed travel controls. However, European stocks started the new trading week higher, despite extensive concerns over the newly discovered Covid variant.

On the domestic front, IT, consumer durables, and telecom indices gained the most, while realty, power and oil and gas indices lost the most. The barometer 30-scrip Sensex closed at 57,260.58 points, up by 153.43 points, or 0.27 per cent, from its previous close.

The broader 50-scrip Nifty closed the day at 17,053.95 points, down by 27.50 points or 0.16 per cent.

"Nifty closed the day on Nov 29 with a long legged doji suggesting possible reversal of the latest downmove," HDFC Securities' Head of Retail Research, Deepak Jasani, said.

"The low of the day i.e. 16,782 will be a crucial level to watch out for on the downside, while on the upside 17,280 could offer resistance."

Motilal Oswal Financial Services' Head, Retail Research, Siddhartha Khemka, said: "Domestic market, after opening positive, witnessed sharp selloff in its initial tick, following its Asian peers and amidst uncertainties of new Covid variant. However, indices soon recovered from lower levels and traded in a narrow range throughout the day, to finally settle in marginal green.

"We expect the market to witness elevated volatility in the near term. However, valuations after the pullback are relatively reasonable now...."

Geojit Financial Services' Head of Research Vinod Nair said: "Global markets traded mixed as investors were torn between buying on dips and the uncertainties over the impact of Omicron on economic recovery."

"However, the global market has factored well the near-term uncertainty limiting further downside. On the domestic front, the telecom sector was in focus as all sector majors reported a rate hike, signalling an end to the low tariff regime."

 

  

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Title: Value buying lifts equity indices, IT stocks rise



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