Concerns over rising global inflation, rate hike woes weigh on Nifty, Sensex

Indian Market Weekly (17 jan to 21 Jan)
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On Monday, the domestic equity benchmarks ended with minor gains. The Nifty closed a tad above 18,300 mark. Auto and realty shares advanced while banks and financials stocks corrected. 

On Tuesday, the domestic equity benchmarks ended with deep cuts. Selling was triggered due to negative global cues, firm crude oil prices and FIIs turning net sellers in the domestic equities. The Nifty closed below the 18,150 mark. All the sectoral indices on the NSE ended in the red.

On Wednesday, the key equity benchmarks ended with deep cuts again. The Nifty closed below the 17,950 mark. PSU banks, autos and metal shares advanced while IT, FMCG and private banks declined. 

On Thursday, the domestic equity benchmarks tumbled for yet another day. The Nifty settled above the 17,750 mark. IT, FMCG, pharma and healthcare stocks tumbled. Metals and realty shares bucked weak market trend. 

On Friday, Nifty ends below 17,650, Sensex plunges 634 pts; IT, pharma, FMCG worst hit except power, realty and metal, all other sectoral indices are trading in the red with auto, IT, FMCG and pharma indices down 0.8-1.7 percent.

  • Nifty IT was the top loser this week.

Here is a quick recap of the market moving developments:

India’s Government bond yield: Bond yield on the benchmark 10-year Government of India bond rose nearly 6 basis points to a 24-month high of around 6.52% on Tuesday. This was the biggest one-day rise in bond yields in the last four months as bond investors asked for higher yields (or interest rates) in view of India's growing fiscal deficit and high inflation. This led to indices falling as smart money can move to bonds.

Q3 Earnings updates: A host of companies including HUL, Asian paints, HDFC bank, Bajaj Finance etc. released their Q3 results. While the banking sector stocks published impressive numbers, Companies dependent on oil & fuel prices like Asian paints posted lower than expected numbers due to rising oil prices. HUL from the FMCG sector posted estimates beating results.

AGS Transact Tech IPO: The issue opened for bidding on 19 January and closed on 21st January. The issue was subscribed 7.79 times by the end of day 3.

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

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