Domestic Indices Continue To Struggle

Nifty 50 and the S and P BSE Sensex have declined by about 3 per cent each during the past two weeks. On September 30, the Nifty 50 index closed at 17,094 points while the Sensex closed at 57,426 points. The Mid-Cap and Small-Cap indices likewise experienced a similar decline, falling 2.39 per cent and 2.60 per cent each to 28,452 and 24,85,3 respectively. The central bank has lowered FY23 GDP growth forecast to 7 per cent from the earlier 7.2 per cent. The automotive index also has seen a drop of 2.58 per cent in the past 15 days to reach 29,177 levels. Amidst the supply chain and chip shortage challenges in the industry, the brands have still maintained their product offerings and continue to deliver 

The BSE Power index has appreciated by 5.16 per cent in one fortnight. India’s power consumption has grown 13.31 per cent in September, 11.65 per cent in Q1FY23. The oil and gas index fell 4.90 per cent in the previous two weeks to close at 18,559 points. The metal index has slumped 4.81 percent in the last two weeks, reaching 18,015 levels. At its meeting on September 22, 2022, the Board of Directors of Tata Steel Limited discussed and approved plans for the proposed amalgamation of six subsidiaries into and with Tata Steel Limited. By a slim margin of 0.33 percent, the information technology sector increased to a level of 27,488.

The FMCG index increased 1.52 per cent to finish at 16,180. Global FMCG giant Nestle S.A., has announced plans to invest ₹5,000 crore in India by the year 2025. The company’s core business will expand faster in the nation as a result of the transfer, which will also enable it to enter new business avenues. The investment would be in capex for setting up new plants and acquisitions and expansion of the product portfolio of Nestle, which currently operates nine plants across India. The company is also looking at new locations to set up manufacturing facilities. Over the last two weeks, the healthcare sector has increased by more than 2.95 percent, hitting a level of 23,340 points.

The likelihood of a recession in the US is relatively high. While, the Euro Zone is bleeding from a historic energy crisis. Global stock markets have been influenced by this pessimistic macroeconomic environment.

Over the last two weeks, the bank index has decreased by more than 5.66 per cent. The index dropped and is currently at 44,179. The Reserve Bank of India (RBI) at its latest meeting announced a 50 basis points hike in the repo rate in an effort to quell inflationary pressure. Presently, the repo rate i.e. the rate at which the RBI lends short-term funds to banks stands at 5.90 per cent, the highest level since April 2019. Foreign institutional investors have turned net sellers in the second half of September, indicating relentless selling. The FII outflow was recorded at ₹20,224.25 crore in just past 15 days. The WTI crude prices settled at USD 81.66.