Sensex, Nifty Start The First Trading Day Of Cy2022 On A Strong Note

After ending 2021 on a firm note, markets have once again kick-started the first trading day of the fresh Cy 2022 on a buoyant note. Nifty in trade today at day's high has reclaimed levels of close to 17,650 points at day's high. Bank Nifty has been a cheer for the market with gains of close to 3 percent. Although broader markets had been underperforming the headline indices.

At the close, Sensex ended with sharp gains of 965 points to end the session at 59,183, while Nifty notched levels of 17,637 at the close, with Coal India emerging as the top Nifty gainer.

The cheer on the D-Street has come off despite the rising Omicron cases both in India and abroad. Also, the unemployment numbers that came in were not good and were at a 4-month high.

So, what triggered the gains on the indices-In fact to the surprise, the Omicron variant which is seen to be not severe is taken in a positive way with no major lockdowns. Also, another reason has been good auto sales number and substantial gains on heavyweight scrips including HDFC and Bajaj twins.

Among, Nifty sectoral indices all indices traded in the green barring Nifty Pharma -which on constituents saw a fall by up to 2 percent as for Laurus Labs.

Metal pack another resilient sector saw Adani Enterprises trade near its 52-week high price of Rs. 1788.9 per share.

Mr. Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers on market performance today said, "Indian markets opened on a positive note on the first trading day of the year despite mixed Asian market trade. During the afternoon session markets maintained their upward momentum and continued to trade in positive territory, following gains in auto, banking and realty stocks. Healthy buying was observed in blue-chip stocks. Sentiments were upbeat as Finance Ministry said that Goods and Services Tax (GST) revenues grew 13 per cent to over Rs 1.29 lakh crore in December 2021, as compared to Rs 1.15 lakh crore GST revenues in the same month last year, mainly due to pickup in economic activity and anti-evasion steps. However, traders overlooked report that India's manufacturing activity lost some momentum in December easing to a three month low after hitting a 10 month high in November, amid fears that the rapidly spreading third wave of the Coronavirus (Covid-19) pandemic may hit consumer sentiment and output."

Rupee meanwhile on the first trading day has been quoting at 74.35 per dollar.

Asian markets with holiday still in some of the markets saw mixed trading, while European markets were mixed with French CAC gaining over a percent.

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