New Delhi, Nov 29, : , Value buying and expectations of strong Q2FY22 growth numbers boosted India’s key equity indexes — S&P BSESensex and NSE Nifty50 — Monday. After a sell-off in the early morning, which was triggered primarily by fears of the Omicron coronavirus variant, the indices saw marginal gains.
The indices opened with a lower mote, but soon made an intra-day low.
Globally, Asian stock market fell further Monday as the Omicron variant was discovered in more countries and travel restrictions were imposed.Despite concerns about the newly discovered Covid variant, European stocks opened the new trading week higher.
The domestic front saw IT, consumer durables and telecom indices gain the most, while realty and power lost the most.The 30-scrip Sensex closed at 57.260.58 points.This was a 0.27 percent increase of 153.43 points or 0.27 percent from its previous close.
The wider 50-scrip Nifty closed day at 17,053.95, down by 27.50 point or 0.16 percent
Deepak Jasani (Host of Retail Research at HDFC Securities) stated that Nifty closed the day on Nov 29, with a long-legged doji suggesting possible reverse of the recent downmove.
“The low of today i.e.16.782 will be the key level to watch for on the downside, while 17.280 could offer resistance.”
Siddhartha Khenka, Motilal Oswal Financial Services’ Head of Retail Research, stated that the domestic market saw a sharp selloff after it opened positive.This was due to Asian peers and the uncertainty surrounding the new Covid variant.
The indices quickly recovered from lower levels and traded in a narrow range all day to settle in marginal green.
“We expect volatility to increase in the market in the near future.” However, valuations following the pullback are still relatively reasonable .”
Vinod Nair, Head of Research at Geojit Financial Services, stated that global markets traded mixed because investors were torn between buying dips and worrying about the impact Omicron will have on economic recovery.
“However, the global markets have considered the near-term uncertainty well and limited further downside.The telecom sector was the main focus on the domestic front as all major sectors reported rate increases, signalling an end of the low tariff regime.
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