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Updated on: Tuesday, December 07, 2021, 09:27 AM IST

Stock market indices open in green: Sensex up 448.32 points, Nifty above 17,000-mark

Bank Nifty jumped more than 1 percent on opening while India VIX was down in red/Representational image |

Bank Nifty jumped more than 1 percent on opening while India VIX was down in red/Representational image |

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The benchmark stock market indices opened higher on Tuesday (November 7). At 09:17 AM, the Sensex was up 448.32 points or 0.79 percent at 57,195.46. The broader Nifty was up 135.50 points or 0.80 percent at 17,047.80. About 1,680 shares have advanced, 306 shares declined, and 49 shares are unchanged.

At the opening bell, the early gainers were Hindalco Industries, Tata Steel, Tata Motors, Maruti Suzuki and Kotak Mahindra Bank. Dr Reddy's Laboratories was the early loser at the bourses.

Bank Nifty jumped more than 1 percent on opening while India VIX was down in red.

Nifty fell sharply on December 6 as mixed Asian markets highlighted valuation concerns in Indian equities. At close Nifty was down 284.5 points or 1.65% to 16912. Nifty closed at the lowest in 3 months.

Nifty continues its downtrend and the next level of support is 16722-16782 band. On upmoves 17026-17051 could act as a resistance. The downtrend may be close to its end going by the number of days it has lasted so far (33). However the recovery may be slow.

Stock to watch out for

Tata Motors can be in focus today as the company increased the price of it’s commercial vehicle effective from beginning of next year.

Asian stocks up

Most Asian stocks rose at the open Tuesday after USequities rebounded and China pledged measures to support slowing economic growth. Treasuries steadied after tumbling.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.6 percent after declining on Monday to the lowest level in one year, according to Reuters. The benchmark has lost 6 percent so far this year, with Hong Kong markets figuring among the big losers, while Indian and Taiwanese stocks outperformed.

On Tuesday, Australia's S&P/ASX200 rose 0.5 percent, while Japan's Nikkei advanced 1.1 percent as risk-on sentiment pushed US stocks higher. China's CSI300 index gained 0.7 percent and Hong Kong's Hang Seng Index advanced 1.3 percent as the central bank freed up $188 billion in liquidity through a policy easing.

US stocks close higher

The Dow Jones Industrial Average scored its biggest daily point gain in more than a year on Monday, while the S&P 500 climbed to its highest close in a week, as investors shrugged off fears about COVID’s omicron variant and prepared for new inflation data on Friday.

Reports from South Africa show that while the virus is rapidly spreading, hospitalizations aren’t. Investors appeared to be reassured by Dr. Anthony Fauci, the top U.S. infectious disease official, who told CNN that "thus far it does not look like there's a great degree of severity to it." However, he did say that more study is needed.

The yield on the 10-year Treasury note rose 9.1 basis points on Monday to 1.433 percent, up from 1.342 percent. It’s the largest one-day gain for the yield in more than three weeks. In oil futures, West Texas Intermediate crude for January delivery climbed $3.23, or 4.9 percent, to settle at $69.49 a barrel. Oil rose as concerns about the impact of the Omicron variant on global fuel demand eased while Iran nuclear talks hit roadblocks, delaying the return of Iranian crude supplies.

Goldman Sachs on Saturday cut its outlook for US economic growth to 3.8 percent for 2022, citing risks and uncertainty around the emergence of Omicron.

Economy showing signs of recovery

Indian economy is showing strong signs of recovery from the devastation caused by the pandemic, with an upswing being reported in 19 out of the 22 economic indicators as compared to the pre-Covid levels.

Oil prices up

Oil prices ticked higher, consolidating a nearly 5 percent rebound the day before as concerns about the impact of the Omicron variant on global fuel demand eased. Brent crude futures rose 0.6 percent to $73.5 a barrel, after settling 4.6 percent higher on Monday.

Bitcoin prices decline

Bitcoin slid 0.63 percent to $49,124.70 after hitting a low of $41,967 over the weekend as profit-taking and macro-economic concerns prompted nearly $1 billion worth of selling across cryptocurrencies. The world's largest cryptocurrency was last around $50,800, having closed a choppy day on Monday 2.2 percent higher.

RateGain Travel Technologies IPO to open today

RateGain Travel Technologies on Wednesday said it has fixed a price band of Rs 405-425 a share for its Rs 1,335 crore-IPO, which will open for public subscription on December 7. The three-day initial public offering (IPO) of the travel and hospitality technology services provider will conclude on December 9. The bidding for anchor investors will open on December 6, the company announced.

The IPO comprises fresh issue of equity shares aggregating up to Rs 375 crore and an offer-for-sale (OFS) of up to 2.26 crore equity shares by promoters and existing shareholders.

Economy showing strong signs of recovery

Indian economy is showing strong signs of recovery from the devastation caused by the pandemic, with an upswing being reported in 19 out of the 22 economic indicators as compared to the pre-COVID levels. High-frequency indicators (HFIs) are being monitored to track the progress of economic recovery in India since the first COVID-19 case was reported in the country in January 2020.

The latest information indicates that among 22 HFIs, full recovery has been achieved in respect of 19 HFIs, as their latest levels in the months of September, October and November this year are higher than their pre-pandemic levels in the corresponding months of 2019, official sources said.

Among the 19 HFIs, there are some indicators whose recovery is way beyond 100 per cent, such as e-way bill by volume, merchandize exports, coal production and rail freight traffic, which suggests that not only the recovery is complete, the economic growth is now gathering momentum over the pre-pandemic levels of output.

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Published on: Tuesday, December 07, 2021, 09:27 AM IST
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