Domestic Markets Put Up A Vibrant Show
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Market Moves, Market Watch
Major economies reporting better-than-expected inflation data has resulted in optimistic global cues, which in turn helped Indian benchmark indices, Sensex and Nifty 50, gain by nearly 2 per cent over the course of a fortnight.
In contrast to the majority of the global indices that witnessed a significant decline following the Federal Reserve’s 75 basis point interest rate hike, Indian domestic indices stood strong.
Major economies reporting better-than-expected inflation data has resulted in optimistic global cues, which in turn helped Indian benchmark indices, Sensex and Nifty 50, gain by nearly 2 per cent over the course of a fortnight. Following the lead of the major indices, the BSE Mid-Cap and BSE Small-Cap indices surged and ended the fortnight with gains of 0.42 per cent and 0.58 per cent, respectively. In contrast to the majority of the global indices that witnessed a significant decline following the Federal Reserve’s 75 basis point interest rate hike, Indian domestic indices stood strong. On the other side, the indices soared almost 2 percent as the US Consumer Price Index (CPI) experienced a significant decline.
According to the data released by the commerce ministry, India’s eight core sectors expanded 7.9 percent in September, picking up speed from an upwardly revised 4.1 per cent in August. Output increased in six out of the eight major industries, including coal, electricity, fertilizers, refinery products, cement, and steel. On November 1, 2022, the Reserve Bank of India (RBI) launched a pilot programme for a central bank-backed digital rupee for the wholesale segment. The digital rupee will be used to bridge gaps in the banking sector and will have the same value as paper currency. BSE Metals was the best-performing sector, with gains of nearly 6 percent, as metals and mining stocks ruled the market.
Base metal prices climbed after a Bloomberg report raised hopes that China’s zero virus policy would be eased soon. In addition, the government authorised 13 private companies to conduct mining exploration operations. Last week, the Wall Street indices had their best session in almost two and a half years as a result of the release of strong inflation data, which also helped the upsurge of the major technology companies. Indian IT stocks soared in response to the strength in US’ information technology stocks, making the BSE IT index one of the top-gaining sectors. Vehicle sales in October surged over 47 percent compared to the same period last year, according to data provided by the Federation of Automobile Dealers’ Association (FADA).
This boost was caused by a large number of customers choosing to take delivery during the festive season. Additionally, as supply chain and semiconductor shortages ease, automakers are offering discounts on some product lines in an attempt to improve sales. Despite a surge in demand and the majority of big players reporting positive quarter results,the BSE Auto index plunged 2.89 percent, making it the worst-performing sector of the fortnight. The FIIs turned net buyers in November and DIIs were the net sellers. The DII outflow was recorded at Rs 6,751.97 crore whereas FII inflow was recorded at Rs 16,668.35 crore in the past 15 days.
