Market Update: Nifty above 17,500, Sensex reclaims 59,000 , Bank Nifty zooms past 36,000; banking, auto share shine

Banking, financial and auto shares pushed domestic equity benchmarks to gain over 1 per cent in the afternoon on the first trading day of 2022 on Monday. The Nifty50 surpassed 17,500, while the Sensex gained over 600 points in the afternoon trade. The broader Nifty touched day’s high of 17,534.10 and was trading wih one per cent gain or 174.40 points to 17,528.45 while the Sensex traded gained over 700 points to reclaim 59,000- mark on Monday. 

Eicher Motors, Tata Motors, Maruti were trading higher on Monday after the the auto companies came up with December auto sales numbers. Meanwhile, the 12-share Bank Nifty zoomed past 36,000-mark as the index banking index gained 1.5%. RBL Bank, AU Small Finance Bank, IDFC First Bank, HDFC Bank and Axis Bank ained between two to four per cent. Among the finacial shares, Bajaj twins were also trading higher with two to three er cent gains.

See Zee Business Live TV Streaming Below:

Arun Agarwal, Deputy Vice President - Fundamental Research, Kotak Securities, says despite decline in sales numbers by some auto companies consumer sentiments remained up beat.

“In December 2021, automobile companies reported mixed performance. Passenger vehicle industry remained impacted on account of chip shortage and accordingly some companies reported YoY volume decline in this segment. However, the consumer sentiments in the passenger vehicle industry remained positive and we expect swift recovery post resolution of chip shortage,” he said.

Arun Agarwal  said domestic two wheeler segment continued to witness pressure due to increased ownership cost and channel destocking. “Tractor companies too reported yoy volume decline amid delayed harvest and higher last year base. On the positive side, the medium and heavy commercial vehicle segment saw recovery in volumes supported by improved fleet utilization,” he added.

All borader market indices traded in the green, while except for Nifty Pharma and Nifty Health care indices, which declined 0.31% and 0.34% respectively, other sectoral idices too were trading positively. 

Pharma  and helathcare stocks dragged the market the most in otherwise a positive trading session. Cipla, Dr Reddy’s and Divis Labs slipped 0.50 to 2 per cent on Monday. Titan, Mahindra & Mahindra and Tech Mahindra were other losers on Monday.