After opening with marginal losses, the benchmark indices turned positive in the early trade on May 22. The S&P BSE Sensex traded at 61,920.75, up nearly 200 points, or 0.31 per cent while the NSE's Nifty was quoting at 18,271.80, up 68 points, or 0.38 per cent. Reliance Industries (RIL), ICICI Bank, Asian Paints, and Kotak Mahindra Bank were the top contributors to the Sensex's decline.

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Commenting on the market outlook, Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "The near-term uncertainty in the global equity markets is likely to continue since there is no resolution yet on the US debt ceiling issue. A strong rally will happen only after this impasse is out of the way. The undercurrent of the market is bullish. Bank Nifty is likely to gain more traction since the Rs 2000 note withdrawal is positive for banks. It will add to the deposits of banks and increase their CASA thereby boosting their bottom line."

An important message for investors is that interest rates have peaked, globally as well as in India, and this is positive for equity markets in the second half of CY 2023. Rate sensitives like financials, real estate/construction and autos will benefit from a probable rate cut by the end of 2023. From the valuation perspective, IT stocks are good value buys now, the analyst adds.

BUZZING STOCKS

Among buzzing stocks, NTPC gained over 1.5 per cent post-March-quarter results, which were announced on Friday (May 19). Power Grid, too, was trading nearly a per cent higher post-Q4 nos. IT stocks such as Infosys, Wipro, and Tech Mahindra also gained 1 per cent. Among losers, Gland Pharma extended its losses and was down nearly 11 per cent. The stock has witnessed a steep correction as the company's March quarter numbers disappointed investors.

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GLOBAL MARKETS

Asian stocks and Wall Street futures struggled on Monday as US debt ceiling negotiations approached crunch time after stalling last week while lingering banking fears and fresh geopolitical worries also capped sentiment. In commodities, oil prices slipped on Monday as caution around the US debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers.