Indian Market wrap: Sensex, Nifty Gain The Most In Eight Weeks.

Indian market wrap this week

On Monday, the benchmark indices fell sharply as uncertainty around the new Covid-19 variant led to heavy selling by Foreign Institutional Investors. Another factor which worried investors was the upcoming monetary policy review meeting, where the RBI could introduce measures to tackle inflation. All the sectoral indices on the NSE ended in the red.

On Tuesday, benchmarks rebounded after two days of relentless selling and closed near the day's high. All the sectoral indices on the NSE ended in the green. Shares rallied across the globe amid hopes that the Omicron variant of the coronavirus would be mild.

On Wednesday, the domestic equity benchmarks ended near the day's high after a strong session. All the sectoral indices on the NSE ended in the green. Auto, IT and PSU banks shares rallied.

On Thursday, the domestic equity benchmarks ended with decent gains, extending their winning streak for a third consecutive session. The Nifty 50 index added 47.10 points or 0.27% to 17,516.85. Both the indices had risen by about 3.60% in three sessions ending Thursday.

On Friday, Sensex, Nifty ended flat amid volatility. Realty, PSU Banks rose the most.

Among sectors, realty and PSU Bank indices rose nearly 3 percent each, while metal, oil & gas, power indices ended in the green.

Nifty 50 ended 1.8% up this week. weekly blog creatives-01 (1).jpg

Top gainers and losers-

  • All sectors were in green this week as excitement from the status quo maintained by RBI in terms of monetary policy buoyed the markets.
  • Tata Steel was the biggest gainer.
  • Divis Labs was the biggest loser. weekly blog creatives-02.jpg weekly blog creatives-03.jpg

Here is a quick recap of the market moving developments:

RBI monetary policy meet:

The RBI kept the policy repo rate unchanged while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting on 8th December 2021. RBI kept the repo rate unchanged at 4%. Reverse repo rate stands at 3.35%. The Marginal Standing Facility (MSF) rate is at 4.25%. The MPC said the policy stance will remain "accommodative" until there is sustainable recovery in the economy. The RBI maintained the FY22 GDP growth forecast at 9.5%. It retained CPI inflation projection at 5.3% in 2021-22.

FIIs selling Indian equities:

The dumping of Indian shares by foreign portfolio investors (FPIs) has been one of the reasons behind the recent correction in the benchmark indices. In December so far, they net sold stocks worth Rs 16,356 crore ($2.2 billion), a third straight month of foreign fund outflow, provisional exchange data shows. If they finish December 2021 as net sellers, it will be the first time since late 2016 when they took out funds from the Indian equities for three back-to-back months in a row.  In October 2021, FPIs were net sellers to the tune of Rs 13,550 crore, and Rs 5,945 crore in the following month.

Omicron variant:

So far till 5 pm Friday, 25 cases of Omicron were found in 5 states of India. Meanwhile, the World Health Organization on Wednesday said the variant could change the course of the pandemic. Scientists worldwide are scrambling to determine just how contagious and lethal omicron is and how effective would existing vaccines be against the virus. While preliminary evidence from South Africa, where the variant was first identified, may suggest that omicron is milder than the delta strain, WHO's technical lead on Covid-19 says it is "too early to conclude" that.

IPOs see traction:

RateGain travel IPO was subscribed 17.49 times at the end of day 3.

Shriram Properties IPO was subscribed 4.6 times at the end of day 3.

MapmyIndia IPO was subscribed 6.16 times at the end of day 2.

Metro Brands IPO was subscribed 0.27 times at the end of day 1.

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