Nifty posts losses for 2nd week straight week as Realty, Bank shares bleed

Stock market this week India

Nifty posted losses for the second straight week, and most sectors fell after the Fed increased the interest rate by 75 basis points.

Indian stock market this week: Nifty movement this week

The Indian equity market started the week on a positive note on Monday despite weak global cues. PSU bank's stocks zoomed for the day. The realty & Metal sectors were the worst performing sector for the day.

The domestic equity market gained over a percent on Tuesday ahead of the FOMC meeting outcome. Investors were not seemingly apprehensive of Fed policy. All the indices closed the day in green, with Pharma and Healthcare as leaders.

On Wednesday, the Indian equity market changed direction for the first time in a week amid negative global cues. Investors remained anxious about the slowing economy and waited for interest rate hike numbers later in the day. FMCG was the best performing sector.

The Indian equity market continued the downward trajectory on Thursday as the Fed hinted at an aggressive stance against inflation in the future. Only FMCG and Media were the two sectors to remain in the green.

On Friday, the Indian market crashed more than 1.5% and closed in red for the third consecutive session. Indian markets reacted to the rate hikes by various central banks which led the dollar index to 112 levels, and USD INR touched a record low of 81.2.

Market this week India: Top Nifty gainers and losers

Key highlights for the week

Indian Forex reserves: Since the outbreak of the war in Ukraine earlier, India’s forex reserves have fallen by more than $80 billion, with a drop of more than $2 billion in the last week as the Reserve Bank of India (RBI) sold dollars to keep the rupee from falling below the 80-per-dollar mark.

Rupee hit fresh low: The rupee on Friday closed a volatile week at a new closing low of 81.04 against the US dollar. The strength of the American currency in the overseas market, a muted trend in domestic equities, a risk-off mood, and firm crude oil prices weighed on the rupee. The RBI has been constantly intervening in markets to ensure a smooth decline in the rupee's value. The government is reportedly not too worried about the rupee's decline since it is expected to act as a natural protective mechanism - import easing and export incentivizing.

Market this week India: Top sectoral gainers and losers

New Telecom Bill: In a bid to do away with British-era laws governing the telecom sector, the Department of Telecommunications (DoT) issued the draft Indian Telecommunication Bill, 2022. Through the Bill, the Centre aims to consolidate and amend the existing laws governing the provision, development, expansion, and operation of telecommunication services, telecom networks, and infrastructure, in addition to the assignment of spectrum.

Tata Steel Merger: In an attempt to consolidate its metal business to drive efficiencies and reduce costs, the Tata Group this week announced the merger of seven of its metal companies into Tata Steel. The board of Tata Steel approved the amalgamation of seven of its subsidiaries - Tata Steel Long Products, Tata Metaliks, The Tinplate Company of India, TRF, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining into and with their parent company Tata Steel.