Indian Market Wrap: Nifty takes winning run to fourth week; ends 2.5% higher

Last updated:
Indian Market Weekly 14 Jan

On Monday, domestic equity indices settled with robust gains. The Nifty closed above the 18,000 mark. Traders built fresh positions in anticipation of yet another strong earnings season. IT majors and HDFC Bank will kick off Q3 results season later this week. All the sectoral indices on the NSE ended in the green. PSU banks, media and auto shares were in demand. 

On Tuesday, the domestic stock market ended with decent gains, rising for the third straight session. IT stocks were in demand as three sector bigwigs are set to announce their Q3 results on Wednesday. Metal stocks tumbled on profit selling. The undertone of the market was bullish in anticipation of strong Q3 earnings. However, gains were capped due to concerns over rising covid-19 cases.

On Wednesday, benchmark indices ended with strong gains, extending their winning run to fourth consecutive session. The Nifty closed above the crucial 18,200 mark. Pharma, healthcare and consumer durables stocks declined. On the other hand, banks, auto, metals and realty shares were in demand. 

On Thursday, domestic equity benchmarks settled with small gains, extending the rally to a fifth consecutive trading session. Trading was volatile due to mixed global cues. The Nifty managed to end above the 18,250 level after hitting the day's low of 18,163.80 in morning trade. Metal, pharma and auto stocks advanced while realty, banks and financial shares corrected. 

On Friday, equity benchmarks Sensex and Nifty ended marginally lower, as positive macroeconomic data failed to lift spirits amid negative cues from global markets

Top gainers and losers-

  • Nifty Realty was the top gaining sector.
  • Only Nifty FMCG was a losing sector this week.

Here is a quick recap of the market moving developments:

Government ownership in Telecom Cos: Vodafone Idea slumped 20.54% after the company approved the conversion of the full amount of interest related to spectrum auction installments and Adjusted Gross Revenue (AGR) dues into equity. The conversion will result in dilution to all the existing shareholders of the company, including the promoters. Following conversion, it is expected that the government will hold around 35.8% of the total outstanding shares of the company. Tata Teleservices also hit a lower circuit limit of 5% at Rs 276.50 after the company said the Indian government will own almost 9.5% in the firm after conversion of dues into equity. TTML on Tuesday said it will opt for conversion of the interest amount on adjusted gross revenue (AGR) dues into equity. The net present value (NPV) of this interest is expected to be nearly Rs 850 crore as per the company's best estimates, subject to confirmation by the Department of Telecom (DoT), it said in a regulatory filing. 

Q3 Earnings updates: A host of IT stocks like Infosys, Wipro, TCS, Mindtree reported their Q3 earnings. While Infosys, TCS and Mindtree posted stellar earnings, Wipro was just within expectations. TCS also announced a share buyback to the tune of Rs 18,000 crore at 4,500 per share.

World Bank on India’s GDP: The World Bank noted yesterday that India's economic growth is expected to be 8.3% in the current financial year and 8.7% in 2022-23. The 8.3% estimate for the current fiscal is the same as what was projected by the World Bank in its last projection released in October 2021 even as it cut the global economic growth forecast.

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!