This Article is From Dec 31, 2021

Sensex Rallies Over 400 Points, Nifty Tops 17,360 On Last Session Of 2021

Sensex, Nifty Updates: The benchmark S&P BSE Sensex surged by 459.50 points points to 58,253.82, while the Nifty 50 rose 159.65 points higher to 17,636.60

Sensex Rallies Over 400 Points, Nifty Tops 17,360 On Last Session Of 2021

Nifty Updates: Hindalco, Titan Company, UltraTech Cement, were among the top gainers.

The Indian equity benchmarks ended 2021 on a positive note led by gains in metal and auto shares, even though concerns about the Omicron variant of coronavirus kept investors cautious globally. The benchmark S&P BSE Sensex surged by 459.50 points to 58,253.82, while the Nifty 50 rose 159.65 points higher to 17,636.60.

Hindalco, Titan Company, UltraTech Cement, Tata Motors were among the top gainers. On the flipside, NTPC, Cipla, Tech Mahindra, Power Grid Corporation were among the top laggards on the NSE. Mid- and small-cap shares ended on a positive note as Nifty Midcap 100 index was up 1.40 per cent and Nifty Smallcap 100 index rose 1.41 per cent. All NSE sectoral indices need in the green with the Nifty Metal, Nifty Auto indices as the top gainers.

The blue-chip Nifty 50 was one of the best performer among emerging markets in Asia in 2021 and outpaced the MSCI World Index which rose 17 per cent. Indian equities scaled a record high in October 2021 with the Sensex hitting an all-time high of 62,245 and the Nifty rose to a record 18,604 in intraday trade.

Even though equities have retreated nearly seven per cent since October on worries over high valuations and the spread of Omicron, but shares ended 2021 locking in their best gains in four years. Carrying the winning momentum forward, the Sensex has clocked a gain of 140 per cent and the Nifty 145 per cent from March 2020 lows.

''Markets recovered significantly during the week with Nifty gaining 2.24 per cent and Sensex gaining 2.16 per cent. This strong pullback and phase exhibits a stock market surge through the last five trading days of December and the first two days of January.

In the past ten years, Nifty has borne witness to this peculiar surge 7 out of 10 times. FII activity in this period has been observed to drop substantially,'' said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Globally, stock markets dipped on Friday in thin trading but were set to see in the New Year with double-digit gains for 2021 while oil prices hovered near $80 a barrel following their biggest annual rise since 2009.

With several markets in Asia and Europe closed on Friday, trading volumes were very thin and most markets directionless. Britain's FTSE 100, an underperformer throughout 2021, fell 0.35 per cent. Wall Street futures pointed to a flat open after a late pullback on Thursday.

The MSCI World Index was marginally higher and remains just 0.5 per cent off record highs. The index has surged 17 per cent in 2021, its third consecutive year of double-digit gains.

In the currency market, the rupee rose 13 paise to settle at 74.29 (provisional) against the US dollar on the last trading session of 2021, tracking positive domestic equities amid year-end dollar selling by banks and exporters.

Back home, the goods and services tax (GST) Council meeting, chaired by Finance Minister Nirmala Sitharaman, today decided that the rate hike on textiles from five per cent to 12 per cent will be deferred, amid objections from states and the industry.

On the stock-specific front, shares of leading cash management company CMS Info Systems Limited got listed with nearly two per cent premium against its issue price of Rs 216. The stock listed at Rs 218.50 on the BSE, a premium of 1.2 per cent over the issue price of Rs 216.

Auto shares rallied today ahead of the announcement of monthly sales figures tomorrow, with Tata Motors settling as a top gainer on the NSE. Also, Reliance Industries announced today that its renewable energy arm acquired a 100 per cent stake in UK-based solar battery company Faradion Limited for an enterprise value of GBP 100 million.