Domestic benchmark indices kicked off 2023 on a flat note, with marginal gains, amid the absence of decisive global cues. Major Asian and global markets observed a holiday on Monday on the account of the new year.The buoyancy from global investors and GST collection of Rs 1.49 lakh crore in the month of December lifted the mood of markets, but muted global sentiments over inflation concerns trimmed the gains. The 30-share pack BSE Sensex was trading only 26.96 points or 0.05 per cent up at 60,870.70 as of 9.20 am. NSE's barometer Nifty50 was trading at 18,123.50, gaining 18.20 points or 0.1 per cent. Broader markets too rose in tandem as BSE midcap and smallcap indices rose about 0.2 per cent in the initial few minutes of trade. However, fear gauge India Vix spiked about 3 per cent to 15.31-level. At the sector front, only IT and media shares were trading in red. Metal stocks led the gainers with a two per cent rise. Auto and banking stocks also supported the markets. On the Nifty50 index, Tata Steel jumped more than 3 per cent, followed by Hindaloco with a 2.6 per cent gains. Tata Motors was by 2 per cent whereas JSW Steel, ONGC and Britannia added one per cent each. Contrary to it, Asian Paints and Bajaj Auto shed over a per cent each. Bajaj Finance, Divis Labs, Sun Pharma and Bajaj Finserv were also among the top losses. In the broader markets, BF Investments, BF Utilities, VST Tillers and Usha Martin jumped 8-20 per cent each, whereas MCX, Jindal Poly Films and Punjab & Sind Bank shed up to 6 per cent. Foreign investors pumped in Rs 11,119 crore in the Indian equities in December, making it the second consecutive monthly inflow, despite increasing concerns over the re-emergence of Covid-19 cases in some parts of the world. Indian rupee rose 6 paise or 0.08 per cent against the US dollar and opened at Rs 82.66 on Monday. The local currency, however, ended the year on a negative note, with a loss of Rs 8.32 or 11.2 per cent.
There are mixed signals from the economy and markets as trading begins for the New Year. Robust GST collections at Rs 1.49 trillion indicate resilience of the economy and surveys among CEOs reveal that many companies are upbeat about hiring and capex in 2023, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"This augur well for India’s economic outperformance again in 2023 and this can lead to market outperformance, too. However, since valuations continue to be high, there can be selling pressure particularly from FIIs, in the early days of 2023," he added. "Market-beating returns can come from banking, capital goods and construction-related sectors."
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today