Benchmark equity indices BSE Sensex and NSE Nifty extended their winning streak for the fourth straight week as traders remain encouraged by the US inflation data for July, which came below the estimate and eased worries about Federal Reserve’s aggressive rate hike in the near term.┬а
The market also took support from the Reserve Bank of IndiaтАЩs (RBI) data which showed that India’s foreign exchange (forex) reserves rose by $2.315 billion to $573.875 billion for the week ended July 29 on the back of robust capital inflows in the equities markets and strengthening of rupee from the record low. The 30-share Sensex advanced 1.84 per cent to 59,462.78 on August 12 from 57,570.25 on August 05. Likewise, the 50-share Nifty index gained 1.73 per cent to 17,698.15.
A total of 31 stocks in the Nifty index delivered a positive return to investors last week. Hindalco Industries emerged as the top gainer in the Nifty with a gain of 7.19 per cent. It was followed by Coal India (up 6.46 per cent), UPL (up 6.05 per cent), and Tata Steel (up 4.94 per cent). Bajaj Finserv, Axis Bank, HDFC, HDFC Bank, and ICICI bank also advanced by over 4 per cent. On the other hand, Divi’s Laboratories, UltraTech Cement and Tata Consumer Products declined 4.68 per cent, 3.12 per cent and 2.70 per cent, respectively.
Market watcher Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, тАЬEquity markets continued to rally with resilient performance during the week. The market rally has been broad-based with gains seen in BSE Midcap, BSE Smallcap, and majority of sectoral indices. Sectoral index performance was led by BSE Metals and BSE Capital Goods indices, whereas some defensive sectors underperformed the broader market. ┬аGlobal equity markets continued their strong rally, as the US CPI moderated in July. In India, FPIs flows were positive this week. With Q1FY23 result season coming towards a close, market focus will shift towards macro factors that include inflation, Central Bank rate action, oil prices, and recession concerns in key economies globally.тАЭ
Sectorwise, the BSE Metal index gained 4.83 per cent during the week gone by. BSE Capital Goods, Power, Bankex, and Oil & Gas indices also rallied over 2 per cent each. In contrast, the BSE Fast Moving Consumer Goods and BSE Healthcare index retreated 1.07 per cent and 0.59 per cent, respectively.
The forthcoming week would be a crucial one as investors would be keenly eyeing the data of the Wholesale Price Index (WPI) for the month of July supposed to be released on August 16. The annual wholesale price inflation rate in India fell to 15.18 per cent in June 2022 from 15.88 per cent in the prior month and less than market estimates of 15.5 percent. Further, Consumer price index (both Agricultural Labourers/ Rural Labourers) data, scheduled to be released on Thursday, August 18, 2022, too would be tracked.
Balance of Trade Final, Import & Export data will be going to release on August 16. India recorded an all-time high trade deficit of $31.02 billion in July of 2022, three times higher than the $11 billion gap a year earlier, pushed higher by a rise in crude oil and coal imports.
Also read:┬аSensex rises 130 pts, Nifty closes shy of 17,700; metal, energy shares gain
Also read:┬аLIC Q1 Results: Net profit climbs 232 times to Rs 683 crore, net premium income jumps over 20%
