Passing week turned out to be a splendid one for the Indian equity market Indices, which rallied around 2% each and settled above the psychological 59,700 (Sensex) and 17,800 (Nifty) levels supported by strength across global markets as crude oil prices eased. The market also took support from the State Bank of India’s report which states that India is likely to become the third largest economy by 2029. India is currently ranked the fifth largest economy.
Adding more optimism, S&P Global in a report said India’s Services PMI rose to 57.2 in August from July’s 4-month low of 55.5, on stronger expansion in new work intakes, an upturn in business activity, and the sharpest rise in employment for over 14 years. The 30-share Sensex advanced 1.68 per cent to 59793.14 on September 09 from 58803.33 on September 02. Likewise, the 50-share Nifty index gained 1.68 per cent to 17833.35.
As many as 36 stocks in the Nifty index delivered a positive return to investors last week. With a gain of 16.16 per cent, Shree Cement emerged as the top gainer in the index. It was followed by Tech Mahindra (up 6.64 per cent), Adani Ports and Special Economic Zone (up 6.52 per cent), and Bharat Petroleum Corporation (up 5.14 per cent). Axis Bank, Cipla, Bharti Airtel, and Infosys also advanced by over 4 per cent. On the other hand, Bajaj Auto, Tata Motors and Nestle India declined 4.51 per cent, 3.49 per cent and 2.69 per cent, respectively.
Vinod Nair, Head of Research at Geojit Financial Services said, “Bulls dominated domestic markets as the indices moved in tandem with developments in the global markets. Global indices edged higher as investors reassessed the outlook for monetary policy following ultra-hawkish remarks from the Fed chair and 75bps rate hikes by ECB. While the energy crisis in Europe continued to haunt investors, Chinese policymakers’ renewed efforts to strengthen its economy boded well for the Chinese bourses. In an effort to stabilize declining oil prices, OPEC+ opted to cut back on output given the faltering global growth outlook. Domestic investors held an upbeat outlook, bolstered by strengthening economic statistics, continued FII inflows, and rising corporate activity. Banking and consumption stocks remained top picks during the week.”
Sectorwise, all BSE sectoral indices close in the green, while the leaders were BSE Information Technology and BSE Teck indices they both gained 3.48 per cent during the week gone by. BSE Bankex and Metal indices also rallied over 2 per cent each also BSE Healthcare, BSE Carbonex, BSE Capital Goods and BSE Oil & Gas indices rose in the range of 1.5 to 2 per cent.
In the coming week, market participants will keep an eye on data released for the Index of Industrial Production (IIP) and Consumer Price Index (CPI) respectively on September 12. They will also be looking forward to the Wholesale Price Index (WPI) data for August, scheduled to be released on September 14.
On the global front, investors would be eyeing a few economic data from the world’s largest economy, the United States (US), starting with Consumer Inflation Expectations on September 12 followed by Inflation Rate, on September 13, Retail Sales, Initial Jobless Claims, Industrial Production on September 15 and finally Baker Hughes Oil Rig Count on September 16.
Market watcher Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities said. “Nifty 50 Index rose for the second consecutive day, climbing 0.2% or 34.6 to 17833. The index advanced to the highest closing level since Aug. 18. After two weeks of correction, Nifty ended this week with a gain of 1.6%. On a weekly basis, Nifty closed at the highest levels since 14th Jan 2022. A close above 17992 For Nifty would result in a fresh trend breakout that could bring more bullish momentum for the Nifty index. Support has now shifted up to 17550 levels.”