Sensex, Nifty extend decline for 2nd week, down 3%

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Indian Market Weekly Wrap Up

On Monday, the benchmark indices logged substantial losses as a result of weak global cues ahead of the Federal Open Market Committee meeting. Sectoral indices declined across the board. The Nifty closed below 17,150 mark.

On Tuesday, the benchmark indices advanced, snapping a five-day losing streak. The Nifty closed near 17,300 level after hitting a day's low of 16,836.80 in early trade. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green. Banks, auto and FMCG shares were in demand. 

On Wednesday, the stock market was closed on account of the Republic Day.

On Thursday, the benchmark indices ended with modest losses, dragged by IT, consumer durables and pharma stocks. On the other hand, banks and auto shares bucked the weak market trend. The Nifty managed to close above 17,100 mark. Trading was volatile due to expiry of January derivatives contracts on the NSE.

On Friday, Nifty ended below 17,200, Sensex fell 581 pts amid high volatility; PSU banks outshone. Among sectors, PSU bank index rose 4 percent, while auto and bank indices rose 0.3-1.3 percent. However, FMCG, realty, pharma, and IT indices shed 1-3 percent.

Banking sectors were the only sectors in green this week.

Here is a quick recap of the market moving developments:

India’s Government bond yield: 

IMF raised India’s GDP growth projection: The International Monetary Fund (IMF) raised its forecast for growth in India's gross domestic product (GDP) in FY23 by 50 basis points (bps) to 9%. India's GDP growth forecast for FY24 was also raised by 50 bps to 7.1%. Explaining the upward revision in an update to its World Economic Outlook report, the IMF said it expects an improvement in India's credit growth which would boost consumption and investment and "better-than-anticipated performance of the financial sector."

Fed Meet: The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation.

Important Q3 earnings: The week was marked by Q3 earnings of major banks, NBFCs and auto majors including Kotak MahindraAxis Bank,  HDFC AMC, and Maruti Suzuki. While Axis Bank and Kotak Mahindra Bank were able to report earnings above estimates, HDFC AMC’s earnings came in-line with expectations. 

Adani Wilmar IPO: The issue opened for bidding on 27 January 2022 and it will close on 31 January 2022. The price band of the IPO is fixed at Rs 218-230. The IPO was subscribed 1.13 times by the end of Day 2.

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!