Sensex, Nifty Snap Two Week Losing Streak

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market wrap weekly

On Monday, benchmark indices ended with strong gains, ahead of Union Budget 2022. The Economic Survey’s prediction of a 9.2% growth rate for FY22 also boosted sentiments. The Nifty closed below the 17,350 level after hitting the day's high of 17,410 in intraday trade. All the sectoral indices on the NSE ended in the green. IT, PSU banks, and realty shares were in demand. 

On Tuesday, the main indices ended a volatile session with robust gains on the Budget Day.  Sensex zoomed 848 points or 1.46% to settle at 58,862 while Nifty index closed 237 points or 1.37% higher at 17,576. Metals, IT, pharma and FMCG stocks advanced while autos and oil & gas stocks declined. 

On Wednesday, the main indices extended gains for the third straight day. The Nifty ended above the 17,570 mark. Metals, IT, pharma and FMCG stocks advanced while autos and oil & gas stocks declined. 

On Thursday, benchmark indices ended with deep losses as investors locked profits after a three-day rally. The Nifty closed above the 17,550 mark after hitting the day's low of 17,511.15 in late trade. Auto stocks bucked a broader selling pressure. 

On Friday, street benchmark indices danced between gains and losses for most of the day before closing in the red. Sensex fell 143 points or 0.24% to close at 58,644 points while Nifty 50 fell 43.9 points or 0.25% to end at 17,516.

Top gainers and losers

  • All sectors were in the green this week.

Here is a quick recap of the market moving developments:

The Economic Survey: The Economic Survey 2021-22 states that the year ahead is well poised for a pick-up in private sector investment with the financial system in a good position to provide support to the revival of the economy. India will witness GDP growth of 8% to 8.5% in 2022-23, supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending.

Budget 2022-23 Analysis: Overall, the Budget has given priority to more fiscal support and spending with the hope that the resultant economic growth will offset the negative impact stemming from a higher deficit. The slew of measures announced for infrastructure and rural development should help to bring the economy back on track. While the taxpayers would have liked an increase in 80C limit or rationalisation of LTCG taxes, no negative surprises such as new surcharges comes as a relief The market seems to have given a thumbs up to the Budget, with the index ending higher on the day. Measures such as a massive ramp-up in capex, focus on healthcare and infrastructure, tax SOPs for MSMEs, digital rupee came as major positives, among others. The fiscal deficit targets as well as the budgeted receipts and expenditures are in line with street expectations. You can read all the major announcements in the Budget and their impact. 

Important Q3 earnings:   Sun PharmaTata Motors, HDFC, Tech Mahindra, Titan and ITC were among the major Nifty companies that reported their earnings during the week. Except Tech Mahindra and Tata Motors, others in the list have met or exceeded street expectations. 

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