Stock Market Starts 2022 On A Positive Note: Sensex Up By 9000+ Points, Highest In Last 3 Weeks

2020 and 2021 have been very tumultuous years for the share market. Both these years have witnessed wealth creation and destruction of equal amounts. So, when the stock market opened on 3^rd Jan 2022, for the first time in the year, every trader wanted it to show some good omen. And it did. It has witnessed the biggest single-day gain since Dec.8.

Sensex and Nifty witness biggest gains since Dec.8

The year has begun on a happy note in the Indian stock market. Both the S&P BSE Sensex and NSE Nifty 50 logged the biggest single-day gain in over three weeks since Dec. 8. This good growth was fueled by banks, information technology, and auto stocks

On Monday, the Sensex rose 1.60 to 59,183.22. This is the first time since Dec. 13 that the 30-stock gauge rose above 59,000. The Nifty 50 index also increased in a similar way to 17,625.70. Coal India Ltd. had the largest increase, rising 6.3%. Today 44 of 50 shares rose, while six fell.

At the same time, the broader markets underperformed their larger peers but rose with both the S&P BSE MidCap and S&P BSE SmallCap gaining a little over 1%. Apart from S&P BSE Healthcare, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Bankex, S&P BSE Finance, S&P BSE Metal adding over 2%. The market environment was skewed in the favour of the bulls. About 2,687 stocks advanced, 873 declined.

Coal India Ltd, Bajaj Finserv Ltd, and Bajaj Finance Ltd were the star performers of the day.

Watch out for these events in the current quarter

Recently Morgan Stanley has published a list of key factors which can affect the equity performance in the March Quarter. It is expecting this quarter to be “eventful, volatile”.

According to Morgan Stanley, The Union Budget And India’s Inclusion In Global Bond Indices can affect the equity market. According to the report, The Union Budget rarely changes the market directionally, but it does produce volatility in stocks. “The one potential game-changer is our expectation of a clarification on tax issues, paving the way for an inclusion in global bond indices by 3Q22,” the report said.

Uttar Pradesh Elections will also have a significant impact on the equity market. India’s most populous state is going to the polls in February. If the ruling Bharatiya Janata Party wins with a mandate greater than or equal to its current one, the market may feel relieved. A setback would threaten policy momentum. And would create volatility in the market.