Domestic Indices Continue With The See-Saw Pattern

The BSE Sensex fell to a close of two-week low on August 19. Consumer inflation in the nation decreased to 6.71 per cent in July, slowing for the third consecutive month, but remained above the central bank’s goal range of 2-6 per cent for the seventh consecutive month. Given the recent two-week increases in both the Nifty50 and the S & P BSE Sensex of over 1 per cent each on August 19, the Nifty 50 index closed at 17,758.45 points while the Sensex closed at 59,646.15 points. Small-Cap and Mid-Cap gains have been more substantial, with both of these indices rising more than 1.5 per cent to close at 24,965.57 and 28,175.38, respectively.

The BSE Power index increased 5.46 per cent in a fortnight, outpacing nearly all the other sectors. Even as solar and wind projects become increasingly capable of meeting daytime requirements, India’s coal plants, which currently generate up to 70 per cent of the country’s electricity, would continue to handle peak night time power demand. The realty index saw a jump of 2.81 per cent in the last fortnight. The index closed at 3,587.66 levels on August 19. The automotive sector has seen a slight increase in the last two weeks.

Automobile manufacturers expect the demand for cars to remain robust amid rising interest among buyers ahead of new launches. The auto index also has seen a rise of 0.20 per cent in the past 15 days to reach 29,733.48 levels. The price of crude oil has fallen to its lowest level in six months. For 2023, the Organisation of Petroleum Exporting Countries (OPEC) projected a growth in India’s demand to 5.38 per cent from 4.67 per cent. After the US and China, India is the third-largest oil-consuming and importing country in the world. The index has rallied by 1.82 per cent in the last two weeks to settle at 19,682.94.

"Domestic investors stepped in to fill the hole when the global headwinds grew greater and foreign investors began to lose faith in the Indian equity markets. They seemed unwavering in their conviction in India’s growth story and its sound economic foundation."

The metal index has reached 18,882.39 levels after rising 1.58 per cent, the biggest in the last two weeks. The Adani Group said on Thursday that it will invest `57,575 crore in the state of Odisha to enter the alumina and iron ore industries. The information technology industry increased by about 0.38 per cent to a level of USD 30,510.03 as fewer IT workers are juggling several job offers and the rejection rates of offers in hand have decreased amid worries about a macroeconomic slowdown, according to analysts. The FMCG index also decreased marginally (0.10 per cent) to end the day at 15,650.87. 

Leading consumer goods manufacturers’ CEOs are upbeat about the holiday season and claim that several signs point to a recovery in demand. The healthcare index was the least performing out of the indices, falling by 1.17 per cent in the past two weeks, reaching a level of 

22,981.23 points. Over the past two weeks, the Bankex index has also gained by more than 2 per cent. The index rose and is currently at 44,738.35. As funding in the banking system continues to decline, Indian banks have boosted their fundraising efforts through the issuance of certificates of deposits. The FIIs have turned net buyers in August and DIIs were the net sellers. The DII outflow was recorded at  ₹ 4,287.08 crore whereas FII inflow was recorded at  ₹10,979.08 crore in the past 15 days.