Sensex, Nifty end a volatile week higher after RBI holds rates

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The Indian market started and closed the week on a positive note. In between, it was a bumpy ride for investors. Nifty managed to close in the green due to a relief rally on Friday, after the RBI maintained a status quo on key policy rates.

Nifty daily price movement

Monday was all about the biggest merger in the Indian equity industry. HDFC Ltd announced its merger with HDFC Bank. Following the news, the HDFC Twins rallied. and so did the market. The market crossed 18000 levels for the first time in the last 2.5 months. The financial services sector had one of the best rallies with a 4.6% increase.

The market started Tuesday on a positive note but witnessed selling pressure in the last hour. Crude oil prices were a concern as Western countries planned to impose additional sanctions on Russia. The Brend oil was trading at over $108 per barrel. Profit booking was seen in the banking stocks.

The market continued the downward trajectory on Wednesday as the financial and IT sectors continued to face selling pressure. Investors were cautious of the Fed meeting and RBI interest rate decision on Friday. Crude prices continued to increase.

The market continued to slide down for the third consecutive day on Thursday as investors continued to await RBI's policy outcome after the US Fed meeting indicating a further tightening of policy. HDFC Twins continued to be the major contributor to the market's weakness. 

The market opened flat on Friday but gained momentum after the announcement of RBI's policy decisions. Indices swung between losses and gains during the RBI's policy announcement. Once the numbers were out, the second half showed a good rally, and the market closed 0.8% higher.

Top sectoral gainers this week

Highlights from the week

HDFC and HDFC Merger - On Monday, HDFC Bank and HDFC Ltd announced the merger of the two entities, setting the stage for one of the biggest deals in the Indian financial sector. The transaction is expected to close over the next 18 months, subject to the completion of regulatory approvals and other customary closing conditions. Check our complete details here.

Weekly stocks/IPO update - Companies started posting topline numbers for Q4. Bandhan bank, IndusInd, and HDFC Bank posted robust Q4 business updates. This week, KFintech and DCX Systems filed for an IPO. Also, Firstcry turned profitable ahead of its IPO. Shares of Yes Bank jumped 11% intraday after Care Ratings upgraded the lender’s credit rating.

Auto Sales numbers - The automotive sector saw a domestic tally of over 3.20 lakh units in March 2022. YoY basis a near-flat growth was registered. The MoM growth stood at 6% as just over 3.02 lakh units were sold in the previous month of February 2022 in India. Check the performance of all major companies here.

RBI monetary Policy Updates - The central bank has kept the repo rate unchanged at 4%. The RBI has also kept the fixed-rate reverse repo unchanged at 3.35%. The RBI has stated that inflation will be 5.7% for FY23. The GDP growth rate for Financial Year 2022-23 would be at 7.2% from the earlier estimate of 7.8%. Check the detailed report here.