Sensex, Nifty50 end higher powered by L&T, HDFC twins

• India’s benchmark indices Sensex and Nifty50 closed higher on Tuesday led by gains in shares of index heavyweights L&T, HDFC twins, Reliance Industries and others.
• Sensex ended 0.94% or 562 points higher at 60,655 while Nifty50 closed 0.89% or 158 points higher at 18,053.
• Analysts believe that quarterly financial results from IT and large banks are supporting indices.

India’s benchmark indices Sensex and Nifty50 closed higher on Tuesday led by gains in shares of index heavyweights L&T, HDFC twins, Reliance Industries and others.

Sensex ended 0.94% or 562 points higher at 60,655 while Nifty50 closed 0.89% or 158 points higher at 18,053.

Most sectoral indices gained on Tuesday except PSU bank (-1.84%), media (-0.86%) and pharma (-0.09%).

Reliance Industries’ shares gained 1.4% as the government announced a reduction in the windfall tax on sale of locally produced crude oil to ₹1,900 per tonne from ₹2,100 per tonne. The government also reduced additional excise duty on the export of aviation turbine fuel and diesel.

Here are top moving stocks in the broader Nifty500 index:
Source: NSE, as on January 17, 2023

Analysts believe that quarterly financial results from IT and large banks are supporting indices while investors await the rest of the results, budget outcome and US Fed comments.

“The domestic market is attempting to gain, in comparison to its weak year-to-date performance, which was caused in anticipation of a soft Q3 result & union budget. We started the third quarter results on a shaky note, but the latest set of financial announcements from IT and banking blue chips are encouraging. Heavy weights are also pushing the counter, including the fact of the fall in windfall tax,” said Vinod Nair, head of research at Geojit Financial Services.

“Given the positive undercurrents, the trend should continue in the short term. However, a lot will depend on the second line of Q3 results, the budget outcome, and the Fed policy statement," added Nair.

Rupee closed 19 paise lower against the US dollar on Tuesday as sustained foreign investor outflows weighed on the domestic currency. Crude oil prices edged up, with the Brent crude gaining 0.46% to $84.85 per barrel.

Both foreign institutional investors (FII) and domestic institutional investors (DII) were net buyers on Tuesday – while FIIs invested ₹211 crore, DIIs invested ₹91 crore.

Source: NSE, as on January 17, 2023

Investors in the US awaited more companies declaring their earnings, while they bought up technology stocks which have seen a considerable correction in the past few months. While the markets in the US were closed on Monday on account of Martin Luther King Jr. day, futures were slightly down.

Asian markets mixed ahead of crucial bank earnings
Investors in Asia are gearing up for crucial bank earnings this week. Markets in the region were mixed on Tuesday, however.

The Hang Seng index was down 0.78%, KOSPI declined 0.86% and Shanghai Composite was also down 0.10% as weak economic data from China had investors concerned. China’s gross domestic product (GDP) sunk to 3% in 2022, its second lowest in 50 years.
SEE ALSO:

Hiring by IT cos down 96% in Q3 compared to preceding 7 quarters even as attrition cools

More unicorns focused on profitability now than just burning cash as funding winter sets in

Over 5.4 lakh housing units to be completed across top 7 cities in 2023: Anarock report