Snapping 6-day losing streak, indices start fresh week in green
Mumbai, May 16, 2022
India's equity benchmark indices closed Monday's trade in the green, after a sixth straight session of decline.
The recent consistent decline was triggered as equity investors were concerned about the persistent high inflation globally and tightening monetary policy stance by several central banks.
The domestic indices had reportedly marked their longest weekly losing streak since last week.
On the specific stock front, Eicher Motors was the top gainer, rallying 8 per cent to Rs 2,626. Besides, Apollo Hospitals, UPL, NTPC and SBI were some of the other top gainers.
Further, Ambuja Cements and ACC stocks also surged on Monday after Adani Group announced that it would buy Holcim AG's controlling stake in the two cement companies. They rose 2.3 per cent and 3.8 per cent, respectively.
"Continued selling by FIIs as they chase high yield US bonds restricts the Indian market to hold on to its pull-back rally, despite interest from the domestic investors," said Vinod Nair, Head of Research at Geojit Financial Services.
Weakness in global equities along with the unfavourable global cues led to heavy selling towards the closing hours, as the investors lacked confidence to take forward their positions.
The investors are currently on a risk deleveraging phase, hunting for safe-haven investments, Nair added.
Diagnostic and pathology firms witnessed profit taking ahead of their Q4 earnings on the back of high competitiveness, said S. Ranganathan, Head of Research at LKP securities.