Slow Return Towards Better Times

Slow Return Towards Better Times On the domestic front, the BSE Sensex rose by 3.08 per cent to 56,072.23 in the past 15 days, recovering losses with support from strong corporate results as investors awaited the Federal Reserve’s interest rate decision. The Indian currency is seen appreciating as opposed to the dollar to all-time low in the last fortnight. The government bond yield also witnessed a slight decrease and reached 7.4 per cent. The BSE Power index has gained 1.90 per cent to quote at 4,459.79 points. Among the other constituents of the index, Adani Power jumped 2.2 per cent and JSW Energy increased by 4.56 per cent during the fortnight. 

The realty sector also witnessed a surge of 3.04 per cent with a closing of 3,501.18 points on July 22. With multiple real estate projects starting every month, the real estate market appears to be gaining momentum. The metal sector increased by 5.27 per cent to a mark of 17,071.68 due to an unexpected increase in the export taxes on both steel and iron ore, two essential raw materials of steel production. The automotive industries also witnessed a good recovery of 3.04 per cent with all the other sectors. The push was mainly due favourable Quarterly Results and the easing of semi-conductor chip. 

The oil and gas sector remained flat and only gained 3.02 per cent in the last fortnight. Oil prices rose on expectations of Russia’s reduction in natural gas supply to Europe could encourage a switch to crude, though concerns over weakening fuel demand because of an expected increase in US interest rates limited gains. Following a 1.9 per cent gain the day before, Brent crude futures for September settlement increased 45 cents, or 0.4 per cent, to USD 105.60 a barrel.

The FMCG sector has picked up pace with growing sales and quarterly results beating the earnings estimates showed assurance to the investors. However, inflation continues to remain the key component that can be monitored and possess a challenge to the companies. The sector rose by 3.44 per cent to a level of 15,444.94. The healthcare sector has also improved by 1.51 per cent to trade at the level of 22,644.33. Most of the healthcare stocks are trading on the higher side as a result of good quarterly results. Meanwhile, IT has exhibited a decent 2.53 per cent return over the last 15 days and stood at a level of 28,729.49 points. The banking sector has improved its rating in this quarter. 

Indian Rating and Research changed the prognosis for the banking industry for FY22–23 from “stable” to “improving.” Additionally, it is supported by improved balance sheets and a positive outlook for credit demand. The banking index was also seen inching upwards by 3.95 per cent to a level of 42,405.30 during the last 15 days. Foreign institutional investors (FIIs) sold shares worth ₹1,878.72 crore, while domestic institutional investors (DIIs) were net buyers to the tune of ₹3,086.47 crore in the Indian equity market in the past 15 days. WTI crude prices cooled off from a record high to USD 95.92. Gold price appreciated by 0.09 per cent in the last 15 days to trade at ₹52,290 for 10 grams of 24 carat gold.