It was a choppy trading session on Monday with indices recovered sharply from their day's lows. Year-end holidays across major markets and the Omicron threat capped the gains. What's in store for Tuesday?
The key benchmark indices staged a smart recovery on Monday helped by steady gains in private banks and IT shares. The Sensex gained 969 points from the day’s low, to settle 296 points higher at 57,420, and the NSE Nifty ended with a gain of 82 points at 17,086. Debutant HP Adhesives ended at Rs 335 - a 22 per cent premium to its issue price of Rs 274 per share.
Shares of RBL Bank hit a 52-week low at Rs 132.35, slipping as much as 23.2 per cent in Monday’s intra-day trade after the bank said over the weekend that Vishwavir Ahuja, its managing director, and chief executive officer, had gone on leave and the Reserve Bank of India (RBI) had appointed Yogesh K Dayal as an additional director of the bank.
The development saw most analysts sound cautious as regards the road ahead for the bank and suggest the December 2021 quarter results may provide the much-needed sentiment support to the counter. The RBI, too, on its part allayed investors’ fears saying that the bank remains on a sound footing.
According to brokerage CLSA: "We believe that with such a transition, banks with the RBI’s permission should give more solid reasoning for the actions of the regulator as minority investors are important stakeholders.
Its 2HFY22 results will be the key in bringing about stability and comfort."
Over the next few days, given the trading holidays owing to the year-end celebrations globally, volume especially from the FII segment is likely to remain thin. However, the key benchmark indices are prone to sudden sharp swings given the uncertain news flow on developments around the Omicron variant and the monthly F&O expiry.
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