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Wednesday, December 22, 2021

Indian shares end over 1% higher as auto, metals rally - Reuters

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BENGALURU, Dec 22 (Reuters) - Indian shares closed higher on Wednesday for a second straight session, with auto and metal stocks leading gains, as investors used dips to buy after a broad-based selloff early in the week.

The NSE Nifty 50 index (.NSEI) and the benchmark S&P BSE Sensex (.BSESN) ended up 1.1% each at 16,955.45 and 56,930.56, respectively. The gains follow a near 1% rise in the indexes on Tuesday after tumbling as much as 3% on Monday.

Still, the benchmarks are down more than 9% from their life-time highs hit in October.

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"Despite a sharp correction in the last week, retail net long open interest in stock futures has come off by only 2%, pointing to continued confidence in staying invested," said S Hariharan, Head- Sales Trading, Emkay Global Financial Services.

"A consolidatory phase going into results season is expected, as volumes would remain muted for the rest of December since there are expected to be few triggers in terms of newsflow."

The Nifty Auto Index (.NIFTYAUTO) was up 1.6%, while the metals index (.NIFTYMET) gained 1.8%. Both had dropped 2.6% and 3.8% in Monday's selloff.

Hindalco Industries (HALC.NS) was the top Nifty 50 gainer, rising 4%, while Power Grid Corp (PGRD.NS) was the top drag, falling 1%.

"The recent market correction provides investment opportunities in quality large-cap and mid-cap stocks," Kotak Securities said in a note.

"Though valuations look rich in isolation, the strong earnings growth in many stocks and sectors provide investment opportunity."

Footwear retailer Metro Brands made its debut in Mumbai market at a discount of 13% compared with its initial public offering price of 500 rupees ($6.62).

Meanwhile, India told state governments on Tuesday to be proactive and on the lookout for surges of the Omicron coronavirus variant after cases nearly doubled within a week across a dozen states. read more

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Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.

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Indian shares end over 1% higher as auto, metals rally - Reuters
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