Weekly Market Wrap: Indian equities markets concluded the week with gains of about 1% each, as dropping global inflation and positive macroeconomic data improved market sentiment.
- SUMMARY
- During the week, 42 firms in the Nifty 50 index produced positive returns to investors.
- This week, Infosys, Tata Motors, Bajaj Auto, Wipro, and HCL Technologies all gained more than 4%.
- Sectorally, the BSE Information Technology index grew the most (5.0%). While the BSE Realty and BSE Auto indices have gained 4.8% and 3.8%, respectively, during the week.
During Diwali week, Dalal Street saw pyrotechnics as positive macroeconomic data fueled market confidence. Indian gauges began the new Hindu calendar year — Samvat 2080 — on a positive note, with frontline gauges rising about 1% apiece during the week.
Retail inflation in India fell for the second consecutive month in October 2023 to a four-month low of 4.87 percent, in line with lower food prices, while wholesale price inflation remained negative for the seventh month in a row in October, at (-) 0.52 percent. Apart from that, India’s merchandise exports increased by 6.21 percent to $33.57 billion in October 2023.
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The BSE Sensex rose 890 points, or 1.37 percent, to 65,794.7 in the week ended November 17, while the Nifty rose 306 points, or 1.58 percent, to 19,731.8. The BSE Information Technology index gained the most (5.0%) during the previous week. While the BSE Realty and BSE Auto indices have increased by 4.8% and 3.8%, respectively, The BSE Bankex index, on the other hand, has fallen 0.8% in the last week.
During the week, 42 firms in the Nifty 50 index produced positive returns to investors. Eicher Motors emerged as the index’s top gainer, with a weekly gain of 9.1 percent. It was followed by Hero MotoCorp (7.6 percent), Coal India (6.7%), Tech Mahindra (5.8%), and TCS (5.1%). Infosys, Tata Motors, Bajaj Auto, Wipro, and HCL Technologies all increased by more than 4%. Axis Bank, Bajaj Finance, and State Bank of India, on the other hand, fell 3.3%, 3.0%, and 2.8%, respectively.
“The domestic markets ended the week on a positive note, buoyed by global cues and favorable Indian macroeconomic indicators hinting at controlled inflation,” said Vinod Nair, Head of Research at Geojit Financial Services. Softer-than-expected inflation statistics in the United States, the United Kingdom, and the United Kingdom boosted market confidence, stoking hopes for an end to the interest rate cycle. Gains in the overall market were fueled by this mindset, particularly in small and mid-cap firms.
He also stated that confidence in export-oriented industries such as IT and pharma has returned, anticipating more expenditure, while the car and real estate sectors have gained favor during the holiday season. However, by the end of the week, banking stocks had been hit by the RBI’s move to increase risk weights for unsecured loans. “Despite this, the market is anticipated to maintain its positive momentum in the short term, supported by declining oil prices and moderating US yields” , Nair said in a statement.
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty has generally traded within a range, indicating a positive mindset. Since the Nifty crossed the critical 19,500 mark two to three days ago, the street has preferred a ‘buy on dips’ strategy. “The trend is expected to continue as the Nifty closes trading sessions above the critical moving averages.” “Support levels are at 19,630/19,500 on the lower end, and resistance is at 19,850/20,000 on the upper end,” De explained.
Frequently asked questions
Why is Dalal Street famous?
Dalal Street is a street in Mumbai, India, that is well-known as the country’s financial center. It is home to the Bombay Stock market (BSE), Asia’s oldest stock market and India’s first.
Which is the largest stock market in India?
Almost all of India’s major corporations are listed on both markets. The BSE is the elder stock exchange, while the NSE is the largest in terms of volume. Both exchanges compete for order flow, which leads to lower costs, increased market efficiency, and innovation.
Which stock market is most famous?
The New York Stock Exchange (NYSE) is the world’s largest stock exchange, with an equity market value of more than $25 trillion USD as of September 2023. The NASDAQ, Shanghai Stock Exchange, and Euronext were the next three exchanges. What exactly is a stock exchange?
What do you mean by inflation?
Inflation is the rate at which prices rise over a specific time period. Inflation is often defined as a broad measure, such as the overall increase in prices or the cost of living in a country.
How does inflation affect the economy?
During inflationary periods, prices rise, and borrowing becomes more expensive. Companies frequently sell fewer things as a result of these two factors, and the economy slows. This could result in lower business profitability, layoffs, and household pressures. The eventual result of this chain of events could be a recession.
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