Nifty ends lower despite Friday’s rally; Q2 earnings, macro data in focus

Stock market this week India

It was a volatile week for the investors with a key highlight being higher than expected US inflation data. Compared to other global markets, the Indian market performed better this week. Despite weak global cues, NIFTY50 was down only 0.74% this week.

Indian stock market this week: Nifty movement this week

The Indian equity market started the week at the low on Monday as both major indices closed the day in the red. The rupee continued to slide lower, and RBI continued to sell dollars as the rupee hit record-low US rate hike woes.

On Tuesday, the market opened with a gap down and continued to slide lower to close nearly 1.5 percent lower. Indian govt bond yields traded higher, tracking the rise in US yields as the 10-year yield inched closer to 4%.

The market turned green for the first time in the week on Wednesday despite weak global cues. IMF cuts India's FY23 growth forecast by 60 bps to 6.8%, but the Indian economy is still on top in terms of growth compared with other major economies.

The Indian equity market investor remained cautious on Thursday as most indices lost value ahead of key inflation data from the US. The indices that were under heavy selling pressure were IT and bank. Metal and Media managed to remain in the green.

On Friday, the market opened with a gap-up and continued to slide up. However, selling pressure was seen in the last hour but despite that, both major indices closed over a percent higher.

Market this week India: Top Nifty gainers and losers

Key highlights of the week:

Quarterly results: The result season has kicked with major IT companies reporting their September quarter results this week. TCS's net profit jumped on-year, and the company also declared a dividend. Check the detailed result here. Wipro reported mixed quarterly numbers, check the details here. HCL Tech and Infosys reported numbers higher than analysts' expectations. Both companies also declared an interim dividend.

Mutual fund AUM: Average Assets Under Management (AAUM) of the Indian Mutual Fund Industry for September 2022 stood at Rs 39,87,990 crore. The AUM share of the SIP-linked funds rose by 200 basis points in the past 12 months and doubled in five years. The SIP AUM grew by 29% annually to Rs 6.4 lakh crore in the past five years, while the total mutual fund (MF) AUM rose by 14% to Rs 38.42 lakh crore. The SIP share expansion is primarily driven by improving monthly SIP inflow, which reached a record Rs 12,976 crore in September.

Forex reserve decline: India’s foreign exchange reserves continue to decline and are likely to decrease further. The RBI has reduced its foreign exchange reserves by about $100 billion to $545 billion. This has been done to control the continuous weakness of the rupee. As per polls, it has been estimated that by year-end, the foreign exchange reserves will be reduced by another $23 billion, after which it will come to $ 523 billion.

Market this week India: Top sectoral gainers and losers

IMF cuts India's growth forecast: The International Monetary Fund trimmed its FY23 growth forecast for India by 60 basis points from its July projection of 7.4% to 6.8%. This is the steepest cut for any major economy barring the US. The IMF stated that the move reflects a weaker-than-expected outturn in the June quarter and more subdued external demand.