Indian equity benchmarks regained the lost ground by recapturing positive momentum after a week of halt boosted by an advance in global risk assets after Federal Reserve meeting minutes showed support for smaller rate hikes from now on. Also, the Organisation for Economic Cooperation and Development (OECD) in its latest report states that India, with a growth rate of 6.6 per cent in this financial year, is set to be the second-fastest growing economy in the G20 in FY 2022-23 behind Saudi Arabia, despite decelerating global demand and the tightening of monetary policy to manage inflationary pressures.
While Revenue Secretary Tarun Bajaj has said India’s tax collection will exceed the budget estimate by nearly Rs 4 lakh crore in the current fiscal on the back of buoyant income tax, customs duty and GST mop-up. These positive signals helped the BSE Sensex to gain 630.16 points, or 1.0 per cent, at 62,293.64 during the week ended November 25, while the Nifty inclined 205.10 points, or 1.1 per cent, to 18,512.75.
Market veteran Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said: “A steady softening of global bond yields on expectations of ‘peak’ inflation and a decline in crude prices helped equity markets continue the momentum and helped the Nifty-50 Index log its new all-time high on a closing basis. FPIs were net sellers in the past five trading sessions, while DIIs were net buyers in the same period. Going forward, D-street will focus on the macro trends. Markets going ahead may be dominated by global news flows and steps taken by different governments to tackle their economy.”
“In the US Federal Reserve officials expect to switch to smaller interest rate increases “soon,” according to minutes from the November meeting released Wednesday. Some officials expressed concern over the impact rate increases could have on financial stability and the economy. In Asia, Mainland China reported more than 31,000 Covid infections on Wednesday, including cases without symptoms. That’s more than the country reported during the Shanghai lockdown in April. In Japan, Tokyo saw the highest core consumer price index reading since 1982” Chouhan added.
As many as 41 stocks in the Nifty 50 index delivered a positive return to investors in the passing week. With a gain of (10.3 per cent), HDFC Life Insurance company emerged as the top gainer in the index. It was followed by Apollo Hospitals Enterprise (up 8.7 per cent), Bharat Petroleum Corporation (up 6.7 per cent), IndusInd Bank (up 5.3 per cent), and Axis Bank (up 3.3 per cent).
Mahindra & Mahindra, NTPC, JSW Steel and Sun Pharmaceutical Industries also advanced by over 2.5 per cent. On the other hand, Nestle India, Kotak Mahindra Bank and Bajaj Finserv declined 2.1 per cent, 1.6 per cent and 1.3 per cent, respectively.
Sector-wise, the BSE Information Technology index and BSE Teck index both gained 1.9 per cent during the week gone by. BSE Oil & Gas has also given a 1.8 per cent return. While, BSE Auto, BSE Capital Goods, BSE Metal, BSE Carbonex, BSE Healthcare and BSE Bankex indices also surged more than 1 per cent. While BSE Power and BSE Realty indices declined 2.1 per cent and 0.9 per cent respectively during the week.
Market strategist Deepak Jasani, Head of Retail Research at HDFC Securities, said: “Nifty gained 1.12% over the week rising in 5 out of past 6 weeks. Global markets traded largely unchanged Friday in thin trading conditions even as they gained for the week. Nifty could continue its upmove and challenge the all time high of 18604 soon while 18325-18403 band could provide support in the near term.”
