Indian Market Weekly: Mixed earnings and macro economic signals weigh on the market

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India Weekly Update

Another week where the market had a roller coaster ride and kept the investors on their toes. The market continued to track the inflation and waited for the Fed’s meeting outcome next week.

On Monday, the market tanked over 1% as the ripple effect of the US market closing low on Friday fearing aggressive rate hikes by the Federal. Also, there were fears of a broader lockdown in China and it also hurt the key commodities like crude oil and copper. The metal sector was one of the most hit.

The market rebounded sharply on Tuesday after Monday's fall. The crude oil prices remain volatile with US crude prices again crossing the $100 mark. The IPO season was back as Campus Activewear opened for subscription. The Realty and Auto sector were standout performers for the day.

Continuing its roller coaster ride, the market fell close to 1% on Wednesday as the rate hikes and inflation continued to worry investors. Reliance hit a new record by becoming the first Indian company to reach X market cap. The LIC IPO was formally announced and the much-awaited IPO will be coming in May.

The market bounced back on Thursday following positive earnings numbers posted by tech firms in the US. China's pledge to support the economy calmed the nerves in Asia. The gains were supported by power, FMCG, and banking stocks as positive global trends boosted market sentiments.

The Indian market started the day on a positive note on Monday. For most of the day, it remained on the greener side. However, the bear took control of the market in the last trading hour and index heavyweights dragged the indexes down.

Highlights of the week:

Quarterly results - The companies continued to report results this week. HDFC Life reported a jump in profits after a few quarters. Check the report here. Bajaj Finance reported its highest net profit and declared dividends. Check the amazing numbers here. HUL reported profits higher than the street estimate despite higher inflation. Also, Axis Bank and Bajaj Auto reported results beating estimates.

LIC and other IPO - The much-awaited initial public offering, LIC IPO is going to open on May 4, 2022, with the highest ever IPO size of Rs 21000 crore. The subscription closes on 9 May. Campus Activewear IPO opened for subscription this week with an IPO size of Rs 1400 crore. Overall, it was subscribed 51 times. Also, Rainbow Children's Medicare opened a Rs 1580 crore IPO and was subscribed 12.5 times.

Reliance future-deal off - Reliance Industries called off its deal to buy Future Retail after the lenders to the latter rejected the proposal. Most of the Future Group stocks hit the lower circuit post the announcement this week. Reliance had first agreed to buy Future Group’s assets for Rs 25,000 crore in August 2020.

Palm Oil ban and inflation - Indonesia has decided to put a ban on palm oil exports to protect its domestic palm oil prices. It has fueled inflation fears in India. Palm oil is widely used by the FMCG companies in making products ranging from biscuits and chocolates to soaps and even cosmetics.