What happened in Indian Stock market in August 2022? Will Nifty 50 sustain the rally in September 2022?

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indian stock market in coming days

Indian stock market this month: Nifty 50

  • The Indian stock market had another positive month, with the Nifty 50 registering gains of 3.5% during August. 
  • August has generally been a positive month for the stock market, with Nifty 50 posting losses just 5 times in the last 17 years. 

Indian stock market this month: Which sectors gained and which lost?

  • Nifty Energy, Nifty PSU Bank, Nifty Bank, Nifty Services Sector jumped upto 8% during the month. 
  • Barring Nifty Pharma and Nifty IT Index, all the indices ended with gains in the month of August. 

Indian stock market August 2022: Nifty movement

  • The Indian stock market started the month on a very good note, despite the geopolitical tensions and a rate hike by the RBI Monetary Policy. 
  • Important auto sales data, macro data and quarterly earnings from companies dominated sentiments through the first week.
  • In the second week too, strong momentum continued with the Nifty reclaiming the crucial 17,500-mark. Major indices gained close to 2% this week amid positive global clues.
  • In the third week, while the Nifty managed to post gains, there was very high volatility. Nifty 50 companies missing estimates in the Apr-Jun 22 period hurt sentiments. 
  • India's retail inflation fell slightly to 7.01% in June against 7.04% in the previous May. However, the measure remained outside the RBI’s tolerance band for the 6th time in a row. 
  • In the week ended August 27th, the Nifty lost 1.1% with IT and pharma stocks bleeding. 
  • Globally, investor sentiment took a hit after ECB policymakers signaled that the central bank will continue to raise interest rates. 
  • However, the index made a major comeback after August 29th's massive fall to close out the month with gains of 3.5%.  

 Indian stock market weekly: Catch the weekly recap for the month of August!

Indian stock market this month: Major stock movement highlights 

  • Reliance Industries: August was an eventful month, with Reliance Industries making some major announcements in the 45th AGM. Check highlights from RIL AGM.
  • RBL Bank: RBL Bank shares jumped more than 23% during the month, backed by news around its fundraising as well as US based College Retirement Equity Fund (CREF) picking up a stake. Check RBL Bank share price analysis
  • NDTV share price soared 90% in the month amid news around Adani Group picking up a 29% stake in the company. Check Adani-NDTV deal
  • Paytm shares were also in the limelight after global brokerage firm Nomura initiated coverage. Check Paytm share price update
  • Digit Insurance has filed for an IPO for Rs 1,250 crore. Read Digit IPO details
  • Auto companies had another good month, after all sectors reported growth in the month of July. Check highlights of auto sales data 

Indian stock market next month: Where is it headed? 

Here are some major factors that will drive the Indian markets in September 

  • Action by global central banks: Analysts note that Fed Chairman Jerome Powell’s grim warning that the monetary policy will ‘cause pain to households and businesses’ has set in a sense of caution among global investors. Any major correction in the global markets will have a spillover effect on India. 
  • Sharp rise in dollar index: The sharp rise in dollar index has rekindled fears that foreign investors may pull out money more aggressively from emerging markets such as India.
  • Rising interest rates in the US, sinking rupee, and higher Brent crude combined weaken the case for consistent foreign inflows into India. This could lead to a correction in the near-term. 
  • The Nifty has started off September on a cautious note amid nervousness in the global market due to rate hike fears. 
  • Analysts say that September would be another volatile month, with major triggers such as inflation, GDP growth, macro data, geopolitical issues and action from global central banks deciding the future course of the market. 

Stock market India: What should you do now?

  • The markets are expected to remain choppy in the near-term. It would be to sit on the sidelines and wait for an opportunity so that you can re-enter at better levels. 
  • Invest in equities in a staggered manner. Avoid lump sum investments.
  • Keep your SIP’s running. Stick to large caps and index stocks that are best suited to navigate the ongoing volatility. Check out Mutual Fund SIPs. 
  • In case of debt investments, invest only high-quality AAA-rated bonds as they have the least risk.
  • Given their lower sensitivity to interest rate changes, shorter duration funds are expected to outperform longer duration funds in the current scenario.

Holiday in Indian Stock market in September 2022

  • There are no festival holidays in the Indian stock market in September. 
  • What happened in the Indian stock market this month?

  • Which sectors gained and which lost in the Indian share market this month?

  • What drove the stock market during the month of August-22?

  • What is the outlook for September 2022?