Markets kick off 2022 with a bang

Sensex leaps 929 points despite Omicron concerns.

Mumbai: Equity indices ratcheted higher in the first trading session of 2022 on Monday, propelled by brisk buying in banking, finance and IT counters amid a global rally even as surging Omicron cases remained an overhang.

A recovering rupee and encouraging macroeconomic data further bolstered sentiment, traders said. Starting off the session confidently, the 30-share BSE benchmark Sensex gained further momentum as the day progressed and touched the day’s high of 59,266.39. It finally ended at 59,183.22, up 929.40 points or 1.60 per cent.

Likewise, the broader NSE Nifty soared 271.65 points or 1.57 per cent to settle at 17,625.70.

Bajaj Finance led the Sensex gainers chart with a jump of 3.52 per cent, followed by Bajaj FinServ, ICICI Bank, Tata Steel, IndusInd Bank, HDFC Bank and Axis Bank. Only five index constituents finished in the red -- Dr Reddy’s, M&M, Tech Mahindra, Nestle India and Titan, slipping up to 1.13 per cent.

The Indian equity market ended the year 2021 with robust gains on Friday. On a yearly basis, the Sensex advanced 21.99 per cent or 10,502.49 points, while the Nifty rose 24.11 per cent or 3,372.3 points.

“Domestic bourses kicked off the New Year on a strong footing supported by banking, auto and IT stocks, following positive cues from global markets. Auto stocks were in focus today as investors digested the mixed auto sales numbers amid the ongoing chip shortage.

“India’s Manufacturing PMI continued to be in the expansion zone at 55.5 in December supported by strong momentum in production and new orders, although the growth was slower on a sequential basis,” said Vinod Nair, Head of Research at Geojit Financial Services.

S. Ranganathan, Head of Research at LKP Securities, said market breadth was extremely positive with a host of small and midcap stocks across sectors posting smart gains.

Barring healthcare, all BSE sectoral indices finished higher, led by bankex, finance, metal, energy and basic materials. BSE largecap, midcap and smallcap indices gained as much as 1.48 per cent.

Asian stock markets were mixed on the first trading day of 2022 on Monday. Hong Kong shares retreated while South Korea stocks gained. Markets in Japan and China were closed. Bourses in Europe were largely trading in the positive zone in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 1.49 per cent to USD 78.94 per barrel. The rupee pared its initial losses and closed 3 paise higher at 74.26 against the US dollar. On Friday, foreign institutional investors (FIIs) were net buyers in the capital market, as they purchased shares worth Rs 575.39 crore, according to stock exchange data.