Indian weekly: Sensex, Nifty rally on easing crude oil prices, peace talks between Russia-Ukraine

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Sensex this week

The Indian market ended the week and started the new financial year on a positive note. The market saw a good rally this week and closed the week with over 3% gains.

Nifty: Daily market movement

On Monday, the market opened in the negative territory but was able to recover and closed higher. The tension over the weekend on the Shanghai lockdown did not impact the market. The commodities prices continued to cool off. The Metal sector continued its rally.

The rally continued on Tuesday amid optimism due to the Russia-Ukraine peace talks. The international crude oil remained volatile and the fuel price in India continued to increase. US crude oil prices were down 8% in two days.

For the third consecutive day, the market closed green on Wednesday. The rally was driven by Reliance Industries, banks, and financial services. The internet stocks saw some recovery and the metal sector was the major loser.

The three-day winning streak was broken on Thursday. The market opened gap-up but went south in the initial hours and closed lower. The inflation worry and the outcome of the RBI policy meeting next week kept the investors nervous.

The market started muted but started the uptrend after the first hour and closed green on Friday. The crude oil price continued to drop. The cabinet approved a mega power policy which cheered the market. The rally was driven by HDFC Twins. For the week, Nifty gained more than 3.3% registering its best week since September 24th. 

Top Sectoral Gainers and Losers

Here are key highlights of the week:

IPOs are back - Three IPOs opened for subscription this week. Though the IPO sizes were small, investors can expect more in the coming weeks. Uma Exports planned to raise Rs 60 crore, and Veranda Learning solution planned to raise Rs 200 crore via its IPO. Hariom Pipe also opened for subscription with its Rs 130 crore IPO. 

Stock updates : The week started with the merger of PVR and INOX, and both companies hit their 52-week highs. Bharti Airtel's share price increased post announcement to acquire a 4.7% stake in Indus Towers and its wholly-owned subsidiary. Check the target price here. Axis Bank announced it is going to acquire Citi's Retail business. Check the impact on the share price. Check our report on HindalcoONGC, and Hero Motocorp for this week to know about the new development in the company.

S&P Global on India's GDP growth - The rating agency said in its report that India is expected to be the fastest-growing economy in the Asia Pacific region in FY23. It pegged India’s GDP growth forecast at 7.8% for the upcoming financial year. S&P Global expects India's average consumer inflation to be at 5.4% in FY23.

Update on Auto Industry - Rating agency ICRA expects the Indian auto component industry to grow by 8-10% in the financial year 2023, aided by easing commodity inflation and supply-chain issues in the second half of the year. In FY22, the industry is expected to grow by 13-15% over the low base of the pandemic-affected FY21. This growth expectation is attributed to export volumes, vehicle replacements, and the pass-through of commodity prices.