BackSensex up 350 pts, Nifty near 17,200; Asian Paints, L&T, HCL Tech top gainers
Indian share markets were higher on Tuesday, with the Sensex up 358 points, and the Nifty rising 106 points
PremiumAsian share markets are mixed today, with markets such as Japan and Korea rising tracking overnight gains on Wall Street.
The Nikkei is up 1.1% while the Hang Seng is down 0.1%. The Shanghai Composite dropped 0.2%.
In the US, Wall Street indices made steady gains on Monday, which marked another record high for the S&P 500 index.
However, trading was muted as investors returned from the Christmas holiday and several overseas markets remained closed.
The Dow Jones Industrial Average rallied 1% while the Nasdaq advanced 1.4%.
Back home, Indian share markets opened on a positive note, following the trend on SGX Nifty.
Benchmark indices are trading on a firm note supported by robust global sentiment and robust export data for December. India’s exports reportedly jumped by 36.2% in the first three weeks of December 2021 as against a 27.7% growth in the same period last year.
Supriya Lifescience, manufacturer of active pharmaceutical ingredients, listed on the bourses today.
The BSE Sensex is trading up by 358 points. Meanwhile, the NSE Nifty is trading higher by 106 points.
Asian Paints and L&T are among the top gainers today. IndusInd Bank, on the other hand, is among the top losers today.
The BSE Mid Cap index and the BSE Small Cap index are trading higher by 0.9% and 1.2%, respectively.
All sectoral indices are trading in green with stocks in the telecom sector and capital goods sector witnessing most of the buying.
Shares of Tech Mahindra and KPR Mill hit their 52-week high today.
The rupee is trading at 74.95 against the US$.
Gold prices are trading up by 0.2% at ₹48,169 per 10 grams.
Meanwhile, silver prices gained 0.2% to ₹62,414 per kg.
Crude oil prices jumped to higher levels even as 1,000 flights were canceled over the weekend on hopes that Omicron may have a limited impact on the economy.
In news from the banking sector, RBL Bank is among the top buzzing stocks today.
Private lender RBL Bank announced the signing of an agreement with Bajaj Finance for the extension of the partnership of co-branded credit cards for a period of 5 years to December 2026.
Note that shares of the private bank had crashed over 20% yesterday amid concerns over its health. Shares hit a 52-week low of ₹138.
The Reserve Bank of India (RBI) had assured depositors and stakeholders yesterday that RBL Bank is "well capitalised" and that its financial position is satisfactory even as shares of the bank witnessed a sell off.
In a slew of developments in the past few days, RBI had appointed an additional director to RBL Bank's board while the lender's MD & CEO Vishwavir Ahuja went on leave.
Against this backdrop, newly-appointed chief Rajeev Ahuja held a press conference on Sunday and said that the financial position of the bank was strong and the sudden change at the top level was not related to any concerns.
As concerns persisted, RBI on Monday said there has been speculation related to RBL Bank in certain quarters which appears to be arising from recent events surrounding the bank.
The RBI added that there is no need for depositors and other stakeholders to react to the speculative reports.
What added to the pressure was media reports stating RBL bank could be excluded from Nifty Bank index. The Semi-Annual Index Rejig of Nifty Indices will be officially announced in the second half of February 2022.
As per reports, Bank of Baroda is top contender for replacing RBL Bank from the 12-share Nifty Bank index.
Shares of RBL Bank are presently trading up by 2.4%.
Speaking of the private bank, have a look at the chart below to see how its stock has performed over the past one year.
Over the last 30 days, the RBL Bank share price is down 27% with major losses coming in the past two days.
To know everything about the RBL Bank saga, check out our article on RBI’s surprising move against RBL Bank.
Moving on, Adani group stocks are in focus today after it was reported that the group is preparing to ship the first coal cargo from Australia’s most controversial mine.
The group will begin exporting high quality, low sulphur coal from its Carmichael mine in Australia as early as this week, tapping a new multi-decade source to meet energy needs.
This comes after battling a seven-year campaign by climate activists and defying a global push away from fossil fuels.
The Carmichael mine in outback Queensland state is likely to be the last new thermal coal mine to be built in Australia, the world’s biggest coal exporter, but will be a vital source of supply for importers such as power plants in India.
A spokesperson said that the first shipment of high-quality coal from the mine is being assembled at the North Queensland Export Terminal in Bowen ready for export as planned.
When Adani bought the project in 2010, it envisioned building a 60-m-tonne-a-year mine with a 400km rail line for around US$16 bn.
It shrank the mine plan in 2018 to 10 m tonnes a year following a sustained “Stop Adani" campaign by green groups which scared off lenders, insurers and major engineering firms.
All Adani group shares have opened on a positive note today. Adani Total Gas is up 2% while Adani Ports gained 1.1%.
(This article is syndicated from Equitymaster.com)
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