Sensex, Nifty gains, RBI Monetary Policy meet, robust business updates support
Last updated: 08 Oct, 2021 | 07:28 pm
On Monday, the key equity indices snapped a four-day losing streak and ended with strong gains.All the sectoral indices on the NSE ended in the green. Metals, PSU banks and realty shares rallied. IT shares bounced after a recent correction.
On Tuesday, the equity benchmarks recovered from early lows and climbed for the second session in a row. Oil & gas stocks rallied due to firm crude oil prices. IT stocks were also in demand amid weak rupee. Meanwhile, pharma and realty shares witnessed selling pressure.
On Wednesday, the equity barometers ended with steep losses. Nifty ended below 17650 mark. Selling was widespread with metals, pharma and PSU banks shares declining the most.
On Thursday, the domestic equity indices settled with significant gains. Positive global cues and robust quarterly business updates by domestic firms supported buying. Bulls took the charge ahead of RBI's monetary policy outcome and Q2 earnings season that was set to kick off on Friday, 8 October 2021.
On Friday, RBI governor Shaktikanta Das announced the decisions of the MPC at 10 am, retaining repo rate at 4% and policy stance as accommodative. The markets continued its positive run through the day. The IT, bank and metals sectors were among the top engines of the rise. Two key domestic developments expected post market hours are quarterly results of TCS and a possible announcement of the winning bidder for Air India. For the week, the Nifty ended 2.07% higher while Sensex closed 2.2% higher.
Top gainers and losers
- Tata Motors was the highest gainer this week due to strong auto sales data for the month of September and the launch of new compact SUV “Punch”. M&M also made it to the list as it opened booking of its SUV “XUV 700”
- Cipla was the top loser for the week. The stock was in the news for partnering with American drug giant Elli Lillys to sell their insulin products.
- Nifty IT, Media and Auto were the top most gainers this week while Pharma and FMCG struggled.
Here is a quick recap of the market moving developments:
RBI Monetary Policy: The Reserve Bank of India on Friday decided to keep the benchmark interest rate unchanged at 4%. Consequently, the reverse repo rate will also continue to earn 3.35% for banks for their deposits kept with RBI. The RBI also retained its FY22 GDP growth forecast at 9.5%.
Quarterly Business Updates: Avenue Supermarts and Bajaj Finance announced their Q2 business updates. Both of them posted strong numbers for the quarter. Dmart’s standalone revenue from operations was up 46% YoY. Bajaj Finance’s deposit book grew 32.4% YoY.
Oil & Gas: Oil prices increased earlier this week after OPEC+ said they would stick to their plan of gradually increasing the oil supply. Some had hoped pressure from the U.S. and India to tame soaring oil prices might have been enough to persuade the group to offer more supply. The prices fell on Thursday after Russian President Vladimir Putin reportedly said record volumes of natural gas could potentially be exported to Europe this year as the continent faces an energy crunch.
Tata Group won the bid for Air India: Tata Sons won the bid for Air India on Friday. Tata will pay Rs 18,000 crore for the Maharaja, outbidding a consortium led by SpiceJet’s Ajay Singh who had bid Rs 15,100 crore. The transaction is expected to be closed by the end of December this year.
That’s all for this week’s market wrap. We will be back with more interesting market insights in the next week!
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