Indian Market wrap: Indices post 2nd worst weekly fall in 9 months; Sensex, Nifty down 3%

The markets posted deep losses on Monday, amid weakness in the global markets. Investors were cautious ahead of the Fed Reserve’s policy decision due on Wednesday. Index heavyweights Reliance Industries (down 2%), HDFC, Bajaj Finance (3.1%) and HDFC Bank dragged. 

On Tuesday, benchmarks closed with modest losses. Global cues remained weak with the rapid spread of Omicron virus and caution ahead of Fed Reserve’s Meet. India’s retail inflation rose to a 3-month high of 4.91% in November. 

Sensex and Nifty extended losses on Wednesday, amid uncertainty around Fed’s move later in the day. Barring Nifty Auto Index, all the sectoral indices ended with losses. 

On Thursday, the domestic equity benchmarks snapped a 4-day losing streak. Investor sentiment was upbeat after the Fed Reserve said that it would end its pandemic-driven easy monetary policy by March-22. Investors had earlier feared that the central bank could put an end to it sooner.  
On Friday, Sensex and Nifty posted their worst day since December 6th. Sensex, Nifty shed 1.5% each as concerns around rising Omicron cases, increasing inflation and a consequent shift to tighter monetary policy weighed. For the week, Nifty and Sensex ended down more than 3% each.  

Top gainers and losers

• Most Nifty Stocks End Lower This Week With Bajaj Finserv and ITC falling the most
• Wipro, PowerGrid were the biggest gainers, jumping up to 5.1%
• Nifty Realty, Nifty Media were the biggest sectoral losers, shedding up to 8.5% in the week

Here is a quick recap of the market moving developments:

Important macro data: India’s IIP rose by 3.2% on Oct-21, according to MOSPI last Friday. India’s CPI Inflation rose to a 3-month high of 4.91% in November, up from 4.48% in October. India’s inflation based on WPI rose to 14.2% on the back of higher food prices. Amid the global shortage of semiconductors, the Union Cabinet announced a Rs 7,600 crore worth Production Linked incentive scheme for semiconductors.  
 

Omicron variant: India's total tally of omicron variant of the coronavirus has reached 101, with Maharashtra reporting the highest cases at 32. The 101 cases spread across 11 states including Rajasthan, Karnataka, Kerala, Gujarat, Telangana, Andhra Pradesh, Chandigarh, Tamil Nadu and West Bengal have all reported cases. A new phase of the Covid-19 pandemic is being experienced in Europe with a steep rise in cases, VK Paul, Member-Health, Niti Aayog observed, adding that India will have to prepared to face such a situation effectively. 

IPOs see traction:  

MapmyIndia IPO was subscribed by a whopping 155 times.  

Metro Brands IPO saw a subscription of 3.64 times. 

Medplus Health IPO which opened on Monday, was subscribed 52.6 times at the end of day 3. 

Data Patterns IPO which opened on Tuesday, got subscribed by 120 times.  

Supriya Lifesciences IPO has been subscribed by 5.69 times at the end of Day2. 

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