Hopes Pinned On The Festive Season

Compared to its competitors, the Indian market is doing better. In the second week of October, the yield on the 10-year government bond of India decreased to nearly 7.4 per cent. Additionally, the annual wholesale inflation rate has fallen to 10.70 per cent.

In September 2022, India’s annual wholesale price inflation rate decreased from 12.41 per cent to 10.70 per cent, underestimating market expectations of 11.5 per cent. This was the lowest reading since September 2021. On a monthly basis, wholesale prices dropped more by 0.65 per cent at the end of September after a 0.58 per cent fall in August. The BSE Sensex closed higher by 1,168 points at the 57,919.97 level on Friday, October 14, recovering from the sharp selling in the last fortnight with strong support from technology shares and banks. The power ministry said it is taking initiatives for integration of non-fossil fuel energy by implementation of green energy corridors.

As such, the power sector saw a fall of 0.17 per cent to a level of 4,603.12 points. The realty sector, on the other hand, rose by 0.16 per cent to end last week at the 3,346.22 mark. During the September quarter, passenger vehicle sales increased by 38 per cent to 1,026,309 units as against 741,442 units in the similar period of the last fiscal. The automobile sector saw an increase of just 0.01 per cent in the last fortnight and traded at a level of 28,596.49 points. Moody’s, the global leading rating agency, said the increase in crude prices will weaken Indian oil companies if net realisation don’t go up. The oil and gas index has seen a significant drop of 1.52 per cent and closed at the 18,081.19 level.

The metal segment has also seen a boom by more than 4.5 per cent and closed at the 18,633.08 level. Aluminium prices surged to a record in October in the immediate aftermath of Russia’s attack and rise of corona virus cases in some cities in China. The IT sector has seen a surge by more than 4 per cent and reached a level of 28,338.37. IT companies in H1FY23 have seen IT fresher hiring exceeding the H1FY22 numbers. FMCG also has seen a 0.49 per cent dip in the last fortnight and closed at a level of 15,775.01 on October 14. Sales of groceries had risen 6 per cent month-on-month in October, reversing consecutive sequential decline in the past three months. 

In the festival run up to Diwali, businesses will actively refill shelves, which will result in stronger growth in October. The healthcare sector also closed on the lower side on October 14 and was down by 0.69 per cent at the 23,324.89 level. For the banking sector Prime Minister Narendra Modi has launched 75 digital banking units across 75 districts with the intention to promote financial inclusion and to offer real-time assistance and redress customer grievances. The foreign portfolio investors (FPIs) sold shares worth Rs 9,978.26 crore while domestic institutional investors (DIIs) were net buyers to the tune of Rs 8,055.05 crore in the Indian equity market in the past 15 days.