Mumbai: Despite the increasing case of infection from the Omicron variant of the Covid-19 virus globally, the stock market has a strong start to 2022 with Sensex up 929 points or 1.6% as the most contributed by the financial industry and reliance.
Reversal of sales of foreign funds in the past few days, because the ongoing holiday season in most markets advanced, also helped rally, market participants said.
The day session witnessed banking & finance and metal stocks leading the rally while health stock, despite increasing uncertainty due to the spread of omicron variants, witnessing selling pressure.
As a result, the Financial Index, Banking and Metal BSE, all are closed with a more than 2% increase while the health index closes slightly lower.
According to Rahul Sharma from the Equity99 advisor, the expectation on the road is that positive momentum will continue for a while.
“However, investors are advised to save capital to take advantage of any major decrease considering omicron infection that increases.
The pharmaceutical sector can be a big bet to see the current scenario,” he said.
The day session also made investors richer around Rs 2.5 lakh crore with the capitalization of the BSE market now at Rs 272.5 Lakh Crore.
In the near future, the stock market is expected to witness several steps, supported mainly by local investors, both institutions and individuals, but the definitive trend will emerge from the third week of the month, market participants said.
This is because that’s when most foreign fund managers will continue after their new year’s break.
It will also be the time when leading Indian companies will begin to announce their quarter results.
In the surprising steps, TCS, Infosys and Wipro, the three of them among the largest software exporter of India, will announce their quarterly results on the same day, on January 12.
HCL Technologies, another leading software exporter, will announce the results on January 14.
The results season will begin with the Q3 results from Avenue Supermarts (D-Mart) on January 8, data from BSE shows.
As happened during the announcement of quarterly results, to a certain extent, this time the financial number of leading companies would affect investor sentiment on D Street, the dealer said.
Recent reversals in sales by foreign portfolio investors have also helped Indian currencies.
From the lowest multi-month level of around 76 to one dollar in early December, Rupee on Monday closed at 74.26 to one dollar.
In the bond market as well, despite the recent RBI decision to cancel several loan plans through government securities, the results of benchmarks in the 10-year gilt hover around the level of 6.45%.
On Monday, the results closed at 6.46%.
Sensex starts 2022 with Bang, get 929 points to 59,000
