IT, pvt banks propel Sensex, Nifty 0.5% higher; HP Adhesives jumps 22% in debut

Indian benchmarks ended higher on Monday, reversing initial losses, amid purchases of some pharmaceutical, financial and IT stocks. The domestic market opened lower today following mixed indications from its Asian peers as investors weighed down their concerns over the Omicron variant of Covid-19.

Reversing losses from the previous session, the BSE Sensex finished 296 points, or 0.52%, up to 57,420, and the NSE Nifty jumped 82.5 points, or 0.49%, to 17,086. During the day, the Sensex climbed 969 points from the day’s low to a high of 57,512.

In line with benchmarks, broader markets also moved higher. The S&P BSE Mid-Cap and S&P BSE Small-Cap indices rose 0.27% and 0.52% respectively.

The overall scale of the BSE market was negative, with 2,272 stocks advancing against 1,433 declining, while 174 remained unchanged.

Best winners and losers

Tech Mahindra, an information technology consulting and services company, topped the BSE Sensex winner rankings with a 3.57% increase. The stock has seen a strong rally this year, gaining 84% this year, as it hit a new lifetime high today.

Some of the other notable winners were Dr Reddy’s Labs, Power Grid Corporation, Kotak Mahindra Bank, and Sun Pharmaceutical Industries.

On the losing side, private sector lender IndusInd Bank emerged as the biggest loser, losing 0.55%. Other notable losers from the BSE Sensex pack were Asian Paints, Maruti Suzuki India, Bharti Airtel and ITC.

Healthcare and sustainable consumption sectors lead the gains

The equity market saw widespread buying with all sector indices except metals and FMCGs, ending in positive territory. Healthcare was the top performer with a gain of 1.37%, led by Bliss GVS Pharma, Gufic BioSciences, Morepen Laboratories, Narayana Hrudayalaya and Natco Pharma.

The health sector was followed by consumer durables, which ended up 0.85%. The main winners of the CDS index were Dixon Technologies (India), Blue Star, Vaibhav Global, Crompton Greaves Consumer Electricals and Bajaj Electricals.

Sharing in the news

RBL Bank: The private sector lender’s shares ended down 18% on Monday after its managing director and chief executive officer (CEO) Vishwavir Ahuja went on leave with immediate effect. Weighted down by development, the action hit a new 52 week low at Rs 132.35 in early morning trading.

HP Adhesives: Shares of the adhesives and sealants company ended up 22% from the first day of trading issue price. The stock got off to a good start on the BSE Sensex, which traded 16% higher at 319 from its issue price of 274 per share. The company’s 125.96 crore IPO received a strong response from investors.

GMR infrastructures: Shares of the infrastructure company climbed 7.97% after signing a shareholders’ agreement with Indonesia’s Angkasa Pura II for the development of Medan Airport on December 23. GMR Airports, which is part of the GMR group, has signed the agreement through its subsidiary GMR Netherlands BV for the development and operation of the Kualanamu International Airport (project) in Medan, Indonesia.

Rattan companies India: The company’s share price fell 4% after the announcement of the appointment of Amitav Panigrahi as CEO of its fintech business. Panigraphi was previously associated with YES Bank, as president – digital transformation, strategic alliances and fintech partnerships.

Stainless steel Leisure: Shares of the Indian cinema chain closed down 4% on Monday. The company in an exchange brief said it began commercial operations for a multiplex cinema in Gurugram from December 24, 2021.

Lupine: The drugmaker’s shares rose more than 2% after receiving approval from the United States Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA) to market Sevelamer carbonate for oral suspension. The drug is used to control serum phosphorus with chronic kidney disease (CKD) on dialysis.

Asian stocks end lower

Shares in the Asia-Pacific region closed largely lower in restricted trade on Monday amid concerns about the spread of the Omicron variant. Markets in Australia, Hong Kong and New Zealand remained closed for the Christmas holidays. According to the latest report, daily cases of the Omicron variant in the United States have exceeded those in the delta wave, while China has reported the highest number of local cases since January.

Japan’s Nikkei 225 index ended down 0.37%, while South Korea’s Kospi index fell 0.4%. The Straits Times index in Singapore fell 0.13% and Thailand’s Set Composite index fell slightly.

China’s Shanghai Composite ended slightly lower, reversing the initial gain, even after the country’s central bank pledged to support the real economy by possibly easing monetary policy.

On the other hand, the Taiwan Weighted Index jumped 0.5% and the Indonesian Jakarta Composite Index rose 0.19%.

Meanwhile, European markets edged up when trade opened on Monday, with most regional markets still closed on Christmas Eve. Investors weighed in concerns over Covid-19 restrictions and tightening central bank policies.