Markets Back In The Top Slot

The domestic indices have been on an uninterrupted winning streak, marking their longest run of consecutive gains since 2007 with an impressive 11-session rally.[EasyDNNnews:PaidContentStart]

The Indian frontline indices have been on an unbroken winning streak, achieving their lengthiest sprint of consecutive gains since 2007 and boasting an impressive run of 11 straight sessions with notable gains. Consequently, the BSE Sensex and Nifty 50 indices have recorded gains of 3.75 per cent and 3.90 per cent, respectively, over the last fortnight. Conversely, broader indices unexpectedly lagged behind the main indices, marking an unusual trend after an extended period, primarily caused by a substantial selloff of Small-Cap stocks by foreign investors. [EasyDNNnews:PaidContentStart]

FIIs recorded an outflow of ₹ 10,068.03 crore whereas DIIs contributed significantly with an inflow of ₹ 7,935.50 crore. Experts have cautioned that Mid-Cap and small-cap stocks may be facing the potential for a correction following a significant upward surge. Nevertheless, the BSE Mid-Cap and BSE Small-Cap indices managed to conclude the fortnight period in positive territory, recording gains of 3.4 per cent and 1.09 per cent, respectively. 

The tables turned for IT stocks as global recessionary concerns eased and investors regained confidence in the sector following a significant correction that made IT stocks available at attractive discounted prices. As a result of an increase in buying interest, the BSE Information Technology index emerged as the top gainer, posting impressive gains of over 5 per cent. The BSE Metals index maintained its rank as one of the leading gainers, benefiting from the sustained upward momentum in metal stocks. 

This was propelled by China’s stimulus to the real estate sector and ongoing positive sentiment in India driven by the government’s emphasis on infrastructure development. Real estate stocks remained an appealing choice for investors, fuelled by robust property sales in recent quarters and renewed optimism stemming from BFSI companies securing large office spaces for lease. While all sectoral indices exhibited notable rises, the BSE FastMoving Consumer Goods (FMCG) and BSE Oil and Gas sectors recorded comparatively modest gains over the fortnight period.

Fresh concerns have arisen within the oil and gas sector following the government’s announcement of a hike in the windfall tax on domestic crude oil to `10,000 per tonne. Conversely, the shares of oil companies, such as Bharat Petroleum Corporation Ltd. and Oil India Ltd., witnessed a surge in response to their plans to make substantial investments aimed at achieving their net-zero goals. India’s key retail inflation rate dropped to 6.83 per cent in August, primarily due to a relative cooling of vegetable prices compared to last month. 

In August, activity within the country’s manufacturing sector reached a threemonth high, driven by a rapid increase in new orders and output. The S and P Global India Manufacturing Purchasing Managers’ Index (PMI) reflected the second-best improvement in the industry in almost three years. Data published by the Ministry of Statistics and Programme Implementation indicates that India’s industrial production experienced a notable uptick in July, reaching a five-month peak at 5.7 per cent.

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