Sensex, Nifty at the high point of the day; auto stocks advance
Published on May 23, 2022 11:27
The domestic equity barometers extended gains and were currently at the day`s high in mid-morning trade. The Nifty traded above the 16,350 mark. Auto shares extended gains for second consecutive session.
At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 429.76 points or 0.79% to 54,756.15. The Nifty 50 index added 96.30 points or 0.59% to 16,362.45.
In the broader market, the S&P BSE Mid-Cap index rose 0.85% while the S&P BSE Small-Cap index added 0.52%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,766 shares rose and 1,429 shares fell. A total of 184 shares were unchanged.
However, persisting inflation worries, looming fears of sharp interest rates hikes and worsening the global economic outlook continued to weigh on investors` sentiments.
On Saturday, the Centre had cut excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre to give relief to consumers battered by high fuel prices that have also pushed inflation to a multi-year high. The excise duty cut would translate into a reduction of Rs 9.5 a litre on petrol and Rs 7 a litre on diesel after taking into account its impact on other levies.
The government has waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry. The duty on exports of iron ore has been hiked up to 50% and on a few steel intermediaries to 15%, according to a notification. The duty changes will be effective from Sunday.
Andhra Pradesh has joined the Global Network of Advanced Manufacturing Hubs (AMHUBs) of the World Economic Forum (WEF). The state government and WEF exchanged the platform partnership on "Shaping the Future of Advanced Manufacturing and Value Chains".
An agreement to this effect was signed on the sidelines of the annual meeting of WEF which began at Davos on Sunday.
The Nifty Auto index rose 2.32% to 11,168.05. The index has added 5.18% in two sessions.
Ashok Leyland (up 5.49%), Maruti Suzuki India (up 4.30%), Mahindra & Mahindra (up 2.90%), Hero MotoCorp (up 2.18%) and Bharat Forge (up 1.93%) were the top index gainers.
Tata Motors (up 1.79%), Eicher Motors (up 1.34%), TVS Motor Company (up 1.51%) and Bajaj Auto (up 1.15%) advanced.
VST Tillers Tractors 3.10%. The company said it has entered into a master supply agreement with US-based Zimeno Inc. DBA Monarch Tractor. The agreement is to supply integrated gear train along with front axle and rear axle assembly, for electric tractor of Zimeno Inc. DBA Monarch Tractor.
Asian stocks traded mixed on Monday amid concerns over slowdown in global economic growth and hawkish statement from Federal Reserve Chairman Powell.
The Fed Chair said that the central bank would notch up interest rates as high as needed taking rates above neutral (rate at which economic activity is neither simulated nor constrained) to curb soaring inflation.
Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
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