US Stocks rebound on bargain hunting

The US stock market finished higher after recouping early selloff on Monday, 24 January 2022, thanks to late hour bargain hunting among recently battered stocks. However, market gains were limited amid concerns about inflation-fighting measures from the Federal Reserve and fretted over possible conflict between Russia and Ukraine.

The Fed is scheduled to begin a two-day meeting on Tuesday, with the latest monetary policy decision due Wednesday afternoon. While the Fed is likely to leave interest rates unchanged, the accompanying statement could hint at the first rate hike as early as the next meeting in mid-March.

At the close of trade, the Dow Jones Industrial Average index rose 99.13 points, or 0.29%, to 34,364.50. The S&P500 index added 12.19 points, or 0.28%, to 4,410.13. The tech-heavy Nasdaq Composite Index grew 86.21 points, or 0.63%, to 13,855.13.

Total shares volume turnover on U.S. exchanges stood at 14.30 billion shares, up from yesterday's 11.73 billion shares. Declining stocks outnumbered advancing ones on the NYSE exchange by 1519 to 1967 and 109 closed unchanged. In the NASDAQ, 2382 issues advanced, 2601 issues declined, and 194 issues unchanged.

Total 8 of 11 major S&P 500 sector indexes advanced, with top performing issues were consumer discretionary (up 1.21%), energy (up 0.55%), and industrials (up 0.53%), while bottom performing issues included utilities (down 1.03%) and healthcare (down 0.37%).

ECONOMIC NEWS: US Output Growth Decelerates To 18-Month Low As Omicron Wave Exacerbates Supply Delays And Labor Shortages- Slowdown in output growth in US was broad-based with both manufacturing and service sector firms reporting near-stalled output as the steep spike in virus cases associated with the Omicron wave meant ongoing supply issues and labor shortages were exacerbated by renewed pandemic related containment measures. Adjusted for seasonal factors, the IHS Markit Flash US Composite PMI Output Index posted 50.8 in January, down notably from 57.0 in December. The resulting upturn in activity was only marginal, and the slowest since July 2020. The seasonally adjusted IHS Markit Flash US Services PMI Business Activity Index fell to 50.9 in January, down from 57.6 in December. Meanwhile, the health of the manufacturing sector improved to the least marked extent since October 2020 in January, as highlighted by the Flash US Manufacturing PMI posting at 55.0, down from 57.7 in December.

Among Indian ADR, Tata Motors fell 3.4% to $31.5, WNS Holdings dropped 0.33% to $85.33, INFOSYS sank 2% to $22.94, Wipro fell 3.05% to $7.62, Dr Reddys Labs sank 1.2% to $58.98, and HDFC Bank declined 2.1% to $67.46. Azure Power Global added 2.5% to $14.55 and ICICI Bank added 0.3% to $21.09.

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