Global risk-on sentiment buoys indices; PSU banks' stocks rise
Mumbai, December 23, 2021
Positive global cues along with rising risk taking sentiment buoyed India's key equity indices -- S&P BSE Sensex and NSE Nifty50 -- during Thursday's late-hour trade session.
Initially, both the indices opened with a gap-up and rose for the third consecutive session.
Globally, Asian shares were modestly higher on Thursday after stocks advanced on Wall Street with encouraging reports about the potential impact of the Omicron variant of coronavirus and stronger US economic data.
Similarly, European stock markets had a higher but fairly cautious opening on Thursday, building on gains late in Wednesday's session.
Consequently, at 3.15 p.m., the S&P BSE Sensex traded at 57,368.79 points, up 0.77 per cent from its previous close.
Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) rose to 17,085.45 points, up 0.77 per cent from its previous close.
"Volumes on the NSE continue to be lower than normal due to holiday mood. Advance decline ratio remains positive," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Among sectors, Realty, Oil & Gas, Power and FMCG have gained the most while Telecom and Metals have lost the most."
According to Gaurav Garg, Head of Research, CapitalVia Global Research: "Domestic Sentiments are impacted as the risk sentiment improved globally after a study showed hospital stay risk for the Omicron variant of Covid-19 is lower than the Delta strain."
"Among sectors, Realty and PSU banks up 2 per cent each while bank, financial services and FMCG up by 1 per cent each."