Sensex ends 813 pts higher, Nifty crosses 17,300 ahead of Budget 2022

The Indian equity market closed in the green today ahead of the Union Budget 2022 to be presented in Parliament on February 1. Sensex zoomed 813 points to 58,014 and Nifty rose 237 points to 17,339. IT and consumer durables shares were the top sectoral gainers with  BSE IT index rising 911 points and BSE consumer durables index gaining 1,020 points in trade today. Tech Mahindra, Wipro, Bajaj Finserv and Infosys were the top Sensex gainers, rising up to 4.88%.

IndusInd Bank, Kotak Bank and  HUL were the top Sensex losers, falling up to 3.51%. Market cap of BSE-listed firms rose to Rs 264.48 lakh crore. Of 30 Sensex shares, 27 ended in the green.

Market breadth was positive with 1,861 stocks ending higher against 1,674 stocks closing lower on BSE. 151 shares were unchanged.

BSE mid cap and small cap indices rose 426 points and 286 points, respectively.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said, "Nifty opened gap up on January 31 & attempted to stretch higher. It managed to surpass the level of 17400 on an intraday basi. However, it couldn't sustain in the higher territory. In terms of the Fibonacci retracement, 38.2% retracement of the entire Jan decline acted as a key barrier for the second consecutive session. Internal structure shows that the Nifty can take a minor degree dip before stretching higher. Any dip in the near term is expected to subside near 17000. So a dip towards 17000 can be considered as a fresh buying opportunity. Overall structure shows that the price action in the last few sessions is a part of the pullback process & the index can head towards 17600 in the short term."

Benchmark indices ended lower on Friday after trading with massive gains during the majority of session. Sensex crashed 884 points from the day's peak to close the highly volatile session 77 points lower at 57,200. The late sell off was triggered mainly in banking and auto shares.

Nifty too moved between gains and losses before closing 8.20 points or 0.05 per cent lower at 17,101.95.

Foreign institutional investors (FIIs) sold shares worth Rs 5045 crore on January 28, and domestic institutional investors (DIIs) lapped up shares worth Rs 3358 crore, as per provisional data available on NSE.

Global markets

The Nikkei 225 in Tokyo rose 1% to 26,981.89 after the government reported December retail sales fell 1% from the previous month’s 2 1/2-year high. That was driven by a 4% fall in food purchases.
The Hang Seng gained 1.1% to 23,814.70 and Sydney’s S&P-ASX 200 shed 0.2% to 6,973.60.

On Friday, the S&P 500 rose to 4,431.85 for its biggest gain since June 2020. The Dow Jones Industrial Average added 1.7% to 34,725.47. The Nasdaq composite jumped 3.1% to 13,770.57.