The benchmark equity indices ended the week on a flat note with a negative bias as global economic gloom persists and investors eyeing the key US jobs data. Meanwhile, market participants also turned cautious as Moody’s Investors Service has lowered its gross GDP growth forecast for India to 7.7 per cent for the calendar year 2022 (CY22). It also lowered India’s GDP forecast for CY23 to 5.2 per cent from 5.4 per cent.
Sentiment also took a hit after the output of eight core infrastructure sectors contracted to a six-month low of 4.5 per cent in July 2022 against 9.9 per cent in the year-ago period.
The BSE Sensex declined 30.54 points, or 0.05 per cent to 58,803.33 on September 2, 2022 from 58,833.87 on August 26, 2022. Likewise, the NSE Nifty index settled 19.45 points, or 0.11 per cent, down at 17,539.45 during the same period. Despite the weak trend, as many as 27 stocks in the Nifty index managed to deliver a positive return to investors.
Prashanth Tapse, Research Analyst, Senior VP (Research), Mehta Equities said, “Nifty takes a breather amidst a cautious mood as focus shifts to the US jobs report. Technically speaking, Nifty’s biggest hurdle is seen at 17,777. Above the same, all bullish eyes will be on Nifty’s psychological 18,000 mark.”
With a gain of 6.41 per cent, Bajaj Finserv emerged as the top gainer in the index. It was followed by Tata Consumer Products (up 3.96 per cent), ITC (up 3.28 per cent), Mahindra & Mahindra (up 3.24 per cent) and Asian Paints (up 3.23 per cent). On the other hand, Hindalco Industries, Shree Cement, Infosys, Reliance Industries, ONGC and TCS declined somewhere between 2 per cent and 6 per cent.
The National Stock Exchange of India on Thursday announced that Adani Enterprises would be included in the Nifty 50 index, replacing Shree Cement, from September 30.
Sectorwise, the BSE Telecom index gained the most 3.84 per cent. Realty, Capital Goods, Auto, FMCG and Consumer Durables indices also gained between 1 per cent and 3 per cent.
At the same time, broader indices managed to outpace Sensex and Nifty during the week gone by. The BSE Midcap, Smallcap and BSE 500 indices rallied 1.37 per cent, 1.35 per cent and 0.38 per cent, respectively.
As many as 14 stocks in the BSE 500 space gained in double digits for the week ended September 2. Among the top gainers in the index, Tata Teleservices (Maharashtra) jumped nearly 44 per cent to Rs 134.80. Other stocks include Poly Medicure, EIH, TCNS Clothing, Varroc Engineering, HLE Glascoat, Escorts Kubota, PCBL, Mazagon Dock Shipbuilders, RHI Magnesita India, Patanjali Foods, KRBL, Vaibhav Global and Swan Energy gained between 10 per cent and 19 per cent.
In the forthcoming week, investors would await the release of the S&P Global Services PMI on September 5. The S&P Global India Services PMI decreased to 55.5 in July 2022 from 59.2 in June as weaker sales growth and inflationary pressures restricted the latest upturn in business activity.
Meanwhile, the trend in investment by foreign institutional investors and the movement of the rupee against the dollar will also be closely watched by the market participants.
Apart from capital markets, there will be buzz from the primary market too, as one important IPOs lined up. Tamilnad Mercantile Bank which offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers will be entering the primary market to raise Rs 832 crore in the price band of Rs 500-525 per share. The issue will be open for subscription from Sep 5 to Sep 7, 2022.
Sharing his view on the coming week, Apurva Sheth, Head of Market Perspectives, Samco Securities said, “Given the absence of major domestic events, Indian market sentiment will be influenced by its global counterparts to determine its movement. Investors around the world will be keeping a close eye on China’s inflation figures. Other important factors that may influence the market include the volatility of oil prices and the movement of the rupee against the US dollar. Investors should pay attention to stock-specific events.”