Indian weekly: Sensex, Nifty end lower as geopolitical tensions, commodity prices weigh

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Indian market weekly

After seeing a good rally in the past two weeks, the market has turned sideways and ended the week lower with the increase in commodity prices, inflationary pressure, and tightening monetary policy. The rising US yields have once again raised concerns that the Fed may increase rates more aggressively, which could prompt overseas investors to pull out their money from emerging markets.

Nifty’s Daily market movement

The market started the week on Monday on a negative note, even though the other Asian market did well on the first day of the week. Profit booking was seen given the rally from the past two weeks. Metal and Media were the outperformers for the day.

The market opened flat on Tuesday, but strong buying was seen in the second half of the day. Index heavyweights like Reliance Industries and IT stocks helped the index close over one percent higher. However, the BSE midcap and smallcap indices ended on a flat note.

The market opened with a gap-up opening on Wednesday but continued to go south due to mixed cues from the international indices and financial stocks. Given there was no major data release, the market was driven by the movement of crude oil.

On Thursday, the market opened on the negative side but Reliance and other IT stocks were again the saviour, the second time in the week. The market closed flat and looked for a trigger to move to the next level. The oil price continued to increase, Brent crude prices increased to $123 per barrel.

The market slipped for the third consecutive day to end the week 0.40% lower on Friday. NIFTY also snapped the two-week winning streak. However, NIFTY small and midcap continued to gain for the third week. For the week, Nifty lost about 0.8%.

Here is a quick recap of the market moving developments:

Maruti plans to enter EV space: Suzuki Motor announced its plan to invest Rs 10,440 crore for the manufacturing of Electric Vehicles (EVs). The first launch could be an electric SUV, and the cost will be around Rs 20 lakh. Check our detailed report here.

Zomato 10-min delivery: Online food delivery platform Zomato announced that it will deliver food in just 10 minutes and will compete with quick-commerce startups such as Zepto. The service will start in April, and the project will kick-off only in four stations in Gurugram for now. Check the detailed report here.

Rating agency Fitch cuts India's GDP estimates: For FY23, Fitch has slashed India's GDP growth from 10.3% to 8.5%. The growth rate will be lower due to the increasing energy price due to the Russia-Ukraine war. It said the inflation in India will be around 5% for the current year.

Oil price increase: The oil price after going below $100 per barrel last week, bounced back to $120 levels. The Russian deputy PM has made a statement that the oil supply might stop for two months.

Update on other stocks: Zee Entertainment stock rocked this week as Invesco dropped its EGM demand. Check the report here. Ruchi Soya FPO opened for subscription this week, check the details here. Paytm stock hit an all-time low on Wednesday and increased on Thursday by 10%. Check the reasons here.