Sensex & Nifty snap 2-week gaining streak, slip 1% each

Sensex & Nifty snap 2-week gaining streak, slip 1% each

Last updated: 22 Oct, 2021 | 12:58 pm

Market wrap: Sensex & Nifty snap 2-week gaining streak, slip 1% each

On Monday, the equity benchmarks rose for the seventh consecutive session and settled at record closing levels. The gains were powered by metals, power and IT stocks. The Nifty hit a record high of 18,543.15.

On Tuesday, the equity barometers saw a correction. Investors mulled corporate earnings as well as the prospect of tightening monetary policy to restrain inflation. The IMF said it expects China to grow 8% this year and India by 9.5% in FY22.

On Wednesday, key indices ended with significant losses. Market heavyweight Reliance Industries was the biggest contributor to the fall, followed by Infosys, HDFC Bank, Hindustan Unilever and Larsen & Toubro. 

On Thursday, the market declined for the third consecutive session. Profit selling, weak Q2 results and negative global cues put pressure on bourses. There are concerns about the adverse impact of inflation and higher commodity prices on corporate revenues and margins.

On Friday, the indices ended lower for the fourth straight session amid volatility. At close, the Sensex was down 0.17% at 60,821.62, and the Nifty was down 0.35% at 18,114.9 ending the week with a 1.2% decline.

Top gainers and losers.

  • Banks stocks topped the charts this week, with 4 out of 5 banks top in the top nifty gainers. Nifty bank and PSU bank were the only sectors gaining this week.
  • Asian Paints was the top loser as it posted below than expected earnings this quarter.
  • Nifty FMCG was the top loser this week due to decreasing demand.

Here is a quick recap of the market moving developments:

Quarterly results: A lot of big names from Asian Paints to HUL declared their quarterly results this week. Overall, the earnings have been a bit disappointing with companies struggling from high commodity prices and input costs, waning demand and supply chain issues such as semiconductor shortages.

100 crore vaccine doses administered: India completed the administration of 100 crore doses of the Covid-19 vaccine on October 21, 2021, in just about nine months since the start of the vaccination drive. This has dampened third wave fears and has been seen as a major milestone achievement.

Nykaa IPO date released: The IPO of FSN E-Commerce Ventures, which runs the online marketplace for beauty and wellness products Nykaa, is set to open for public subscription next week on Thursday, October 28. The three-day initial public offering will conclude on Monday, November 1.  The price band of the initial share sale is fixed at ₹1,085-1,125 per share. Nykaa will be raising Rs 634.19 cr with Rs 630 cr via fresh issue and Rs 4.19 cr via offer for sale.

 RBI minutes of the meeting: On Friday, the RBI released its minutes of the meeting which was held earlier this month. The monetary policy committee had voted to keep the accommodative stance with a 5 to 1 vote. The dissenting member, Jayanth Verma, in the minutes of the meeting expressed strong dissent on the continuation of the so-called accommodative stance citing that risks on growth and inflation are beyond the control of the rate-setting panel and arguing that upside risks to inflation are now more aggravated.

That’s all for this week’s market wrap. We will be back with more interesting market insights in the next week!

Check out other interesting articles: