AgenciesRelated
NEW DELHI: Domestic benchmark equity indices were off to a positive start on Wednesday, even as oil prices jumped on US import ban on Russian energy imports. The UK said it will phase out Russian oil imports by 2022 end, which pushed oil above $130 a barrel mark. Stocks gained as investors judged recent corrections as unwarranted.
At 9.20 am, the BSE Sensex was trading at 53,676.35, up 252 points or 0.47 per cent. Nifty50 was quoting at 16,059.65, up 46.20 points or 0.29 per cent.
Dr Reddy's Labs was the top Sensex performer, rising 1.29 per cent to Rs 3,917. Infosys, Sun Pharma, Tech Mahindra and Titan Company added over 1 per cent each. Asian Paints fell 1.12 per cent to Rs 1,704. ICICI Bank, Nestle India, HDFC Bank and Axis Bank declined up to 1 per cent.
The recent slide has sent Nifty Bank into a bear market for the first time since March 2020. The index has fallen over 20 per cent from the peak on growing concerns that higher energy prices may curtail India’s GDP growth.
Investors were keenly awaiting the outcome of UP state elections due tomorrow and were looking forward to the LIC IPO which received Sebi's go ahead, as per ET NOW sources. According to the report, Sebi has issued an observation letter for the same. The approval has come within 22 days of filing.
As long as the war lingers and crude remains at high levels, a sustained rally is unlikely. High crude oil will impact India's GDP growth and corporate earnings growth for FY23. FY23 Nifty EPS estimate of 870 at the beginning of this year will be missed. Higher inflation will be another negative.
VK Vijayakumar of Geojit Financial Services said the market has responded to the emerging scenario with a Nifty50 correction of over 14 per cent.
"But IT, metals, energy and pharma stocks have done well since they stand to benefit from the price and demand trends. For investors who are prepared to take another 5 per cent hit in prices in the short run, quality financials present a buying opportunity," Vijayakumar said.
At 9.20 am, the BSE Sensex was trading at 53,676.35, up 252 points or 0.47 per cent. Nifty50 was quoting at 16,059.65, up 46.20 points or 0.29 per cent.
Dr Reddy's Labs was the top Sensex performer, rising 1.29 per cent to Rs 3,917. Infosys, Sun Pharma, Tech Mahindra and Titan Company added over 1 per cent each. Asian Paints fell 1.12 per cent to Rs 1,704. ICICI Bank, Nestle India, HDFC Bank and Axis Bank declined up to 1 per cent.
The recent slide has sent Nifty Bank into a bear market for the first time since March 2020. The index has fallen over 20 per cent from the peak on growing concerns that higher energy prices may curtail India’s GDP growth.
Investors were keenly awaiting the outcome of UP state elections due tomorrow and were looking forward to the LIC IPO which received Sebi's go ahead, as per ET NOW sources. According to the report, Sebi has issued an observation letter for the same. The approval has come within 22 days of filing.
As long as the war lingers and crude remains at high levels, a sustained rally is unlikely. High crude oil will impact India's GDP growth and corporate earnings growth for FY23. FY23 Nifty EPS estimate of 870 at the beginning of this year will be missed. Higher inflation will be another negative.
VK Vijayakumar of Geojit Financial Services said the market has responded to the emerging scenario with a Nifty50 correction of over 14 per cent.
"But IT, metals, energy and pharma stocks have done well since they stand to benefit from the price and demand trends. For investors who are prepared to take another 5 per cent hit in prices in the short run, quality financials present a buying opportunity," Vijayakumar said.
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