Indian Market Wrap: Sensex, Nifty Begin New Year On A High Note, Best Weekly Returns In Four Months

Indian Market Weekly Wrap

On Monday, the market kicked off the calendar year 2022 on a robust note as the Nifty settled above 17,600 mark. The rally was broad based with the mid and small cap indices rising over 1% each. Positive economic data boosted investors sentiment. Barring pharma and healthcare, all the sectoral indices on the NSE ended in the green. Auto shares climbed on encouraging monthly sales data. 

On Tuesday, domestic shares advanced for the third consecutive session, tracking strength in global stock markets. The Nifty ended above the crucial 17,800 mark. Investors shrugged off a steady rise in the number of fresh covid cases, as reports suggest lower impact of the new variant on economic recovery. 

On Wednesday, the benchmark indices rose for the fourth straight session, supported by firmness in banks and financial services. Gains were capped due to weakness in IT stocks.

On Thursday, the benchmark indices witnessed a sharp decline, after a four-day rising streak. IT, realty and banks stocks declined while auto, media and consumer durables stocks advanced.

On Friday, Selling is seen in the auto, capital goods and pharma stocks, while buying is seen in the bank, FMCG, IT and oil & gas stocks.

Top gainers and losers

  • Nifty Bank was the top gaining sector due to robust business updates.

Here is a quick recap of the market moving developments:

Minutes of Fed Meeting: Minutes from the U.S. Federal Reserve's December meeting released Wednesday showed the central bank has discussed reducing its balance sheet shortly after it raises rates later this year. The minutes show officials to be considering shrinking the balance sheet along with raising rates as another way to remove policy accommodation. The Fed also signaled it could get more aggressive in raising rates. 

Fed officials said repeatedly during the meeting that they believe ultra-easy policies instituted in the early days of the COVID-19 pandemic were no longer warranted or justified. Addressing the key pillars of their dual goals, committee members expressed concern over surging inflation while saying they see the jobs market at close to full employment. 

Rising covid cases: India has reported 90,928 cases in the last 24 hours, recording a sharp spike of over 56% in daily new infections. The country's active caseload now stands at 2,85,401. The country also reported 325 deaths. The Omicron tally in the country stands at 2,630.

Business updates: Big names in the banking sector like Bajaj Finance, HDFC Bank, IDFC first bank, RBL, Yes Bank and other stocks like DMart released their business update. Overall, the business updates from banks seem to be robust, with strong growth in deposits as well as advances. Some consumer businesses including Titan, DMart have also robust business updates during the quarter, leading to a rally in their share price. 

Auto Sales Data: As it was the first week of the month, the auto sector was out with it’s monthly sales numbers. The big takeaways from the numbers were:

  • The bad situation of the auto sector caused by commodity inflation, semiconductor shortage etc seems to be improving
  • Tata beat Hyundai to become the 2nd largest car seller in December 2021 on the basis of units of cars sold
  • The situation with two wheeler seems to not be improving due to lack of demand.

That’s all for this week’s market wrap. We will be back with more interesting market insights in the next week. Wishing all our users a very Happy New Year 2022!