The minutes of the Federal Open Market Committee (FOMC), which hinted towards a less aggressive stance in the coming policies, is expected to start a rally in global equities. While in the domestic market, India’s forex reserves increased by $2.537 billion to $547.252 billion for the week ended November 18. ,
Added to this, foreign portfolio investors have pumped in Rs 32,344 crore into Indian stock markets so far in November and have again turned net buyers, with market participants also in line with the latest report from S&P Global Ratings. Bullish has shown that the impact of global recession will be less. Domestic demand-led economies such as India, Indonesia and the Philippines. On these positive cues, the BSE Sensex closed at 62,868.5, up 574.86 points or 0.92 per cent, while the Nifty closed at 18,696.1, down 183.35 points or 0.99 per cent, during the week ended December 02.
Market veteran Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities, said: “Nifty and Sensex rallied around 0.8% each to hit all-time highs in the last week. BSE Midcap index rose 1.63% while BSE Smallcap index rose 1.94%. Continued softening of global bond yields on expectations of ‘peak’ inflation and fall in crude oil prices helped equity markets to continue the momentum and helped the Nifty-50 index to touch its new all-time high on a closing basis.
“FPIs were net buyers in the last five trading sessions, while DIIs were net sellers in the same period. Going forward, D-Street will focus on macro trends. Going forward, the markets may be dominated by the global news flow and the steps taken by various governments to tackle their economies. On the economy front, Q2FY23 real GDP grew by 6.3%, while GST collections for October (collected in November) stood at Rs 1.469 lakh crore (September: Rs 1.517 lakh crore). Chauhan said.
Last week, 41 stocks of the Nifty 50 index gave positive returns to the investors. With a gain of (5.8 per cent), Britannia Industries emerged as the top gainer in the index. It was followed by Tata Steel (up 5.5 per cent), UltraTech Cement (up 5.3 per cent), Bharat Petroleum Corporation (up 5.1 per cent) and Grasim Industries (up 5.0 per cent).
SBI Life Insurance Company, Hindalco Industries, Hero MotoCorp and Reliance Industries also rose over 4 per cent. On the other hand, Eicher Motors, Maruti Suzuki India and Coal India declined by 2.4 per cent, 2.2 per cent and 2.1 per cent, respectively.
Sector-wise, the BSE Realty index gained 4.2 per cent during the past week. BSE Metal has also given a return of 3.4 per cent. While, BSE Fast Moving Consumer Goods, BSE Information Technology, BSE Oil & Gas, BSE Carbonex, BSE Tech and BSE Healthcare indices also rose more than 1 per cent during the week.
Vinod Nair, Head Market Strategist, Research, Geojit Financial Services, said, “Negative cues from global counterparties and broad-based profit-booking in large caps capped the rally in the domestic market.” The market correction was led by auto stocks as sales numbers came in lower than expected due to weak exports and sequential de-stocking. The decline in manufacturing activity in the US is evidence that tightening central bank policy is beginning to show results, which in turn will encourage the Fed to hold off on rate hikes.