Indian equity benchmarks managed to eke out slender gains during the passing week as traders reacted positively to the Reserve Bank of India’s (RBI) policy decision on expected lines.
Key gauges made a pessimistic start to the week as sentiments remained down-beat as a private survey showed India’s factory activity expanded at the slowest pace in five months in September but remained solid, with strong demand driving business confidence to its highest level this year, despite increased inflationary pressures.
The Manufacturing Purchasing Managers’ Index, compiled by S&P Global, fell to 57.5 last month from 58.6 in August.
Traders paid no heed to data showing that the output of eight core industries rose to a 14-month high of 12.1 per cent in August 2023 as against 4.2 per cent a year ago, mainly due to expansion in coal, crude oil, and natural gas production.
Markets extended losses as sentiments remain dented as the World Bank increased its retail inflation forecast for India for 2023-24 to 5.9 per cent from the 5.2 per cent estimate made in April.
Traders remained cautious as the Engineering Exports Promotion Council (EEPC) stated that overall exports of engineering goods from the country have been affected by the global slowdown. It said that from April to August in 2023, overall engineering exports dropped 4.55 per cent to $44.62 billion as against $46.74 billion in the previous similar period of 2022.
Sentiments remained down-beat after Crisil Ratings indicated that while rating upgrades continue to outnumber the downgrades substantially due to robust domestic demand and government capital expenditure from April to September 2023, sluggish exports are beginning to add pressure to the credit quality of some Indian firms.
However, markets took a U-turn and recovered some lost ground amid stability in global indices following ease in US Bond yields and a fall in crude oil prices from their recent highs.
S&P Global’ ‘s India services purchasing managers’ index rose to 61.0 last month from 60.1 in August. The reading was above the 50-mark separating growth from contraction for the 26th consecutive month.
Buying on the final day of the week mainly helped markets to end the week slightly in green after The Reserve Bank of India’s (RBI’s) monetary policy committee (MPC), as expected, left the key lending repo rate unchanged at 6.5 percent for the fourth consecutive time, as the focus remained on bringing inflation down.
BSE movement for the week
The Bombay Stock Exchange (BSE) Sensex increased 167.22 points or 0.25% to 65,995.63 during the week ended October 06, 2023.
The BSE Midcap index lost 263.05 points or 0.81% to 32,077.66, while the small-cap index surged 298.35 points or 0.79% to 37,860.58.
On the sectoral front, S&P BSE Consumer Durables was up by 1,168.90 points or 2.58% to 46,528.84, S&P BSE Realty was up by 89.49 points or 1.94% to 4,695.42, S&P BSE Information Technology was up by 578.32 points or 1.80% to 32,643.66, S&P BSE TECK was up by 205.18 points or 1.42% to 14,676.08 were the top gainers on the BSE.
S&P BSE Power was down by 118.29 points or 2.54% to 4,541.31, S&P BSE Metal was down by 551.50 points or 2.38% to 22,654.83, S&P BSE Oil & Gas was down by 321.24 points or 1.69% to 18,704.42, S&P BSE Healthcare was down by 431.66 points or 1.51% to 28,065.86 and S&P BSE PSU was down by 169.32 points or 1.34% to 12,477.57 were the top losers on the BSE.
BSE movement for the week
The Bombay Stock Exchange (BSE) Sensex increased 167.22 points or 0.25% to 65,995.63 during the week ended October 06, 2023.
The BSE Midcap index lost 263.05 points or 0.81% to 32,077.66, while the small-cap index surged 298.35 points or 0.79% to 37,860.58.
On the sectoral front, S&P BSE Consumer Durables was up by 1,168.90 points or 2.58% to 46,528.84, S&P BSE Realty was up by 89.49 points or 1.94% to 4,695.42, S&P BSE Information Technology was up by 578.32 points or 1.80% to 32,643.66, S&P BSE TECK was up by 205.18 points or 1.42% to 14,676.08 were the top gainers on the BSE.
S&P BSE Power was down by 118.29 points or 2.54% to 4,541.31, S&P BSE Metal was down by 551.50 points or 2.38% to 22,654.83, S&P BSE Oil & Gas was down by 321.24 points or 1.69% to 18,704.42, S&P BSE Healthcare was down by 431.66 points or 1.51% to 28,065.86 and S&P BSE PSU was down by 169.32 points or 1.34% to 12,477.57 were the top losers on the BSE.
BSE movement for the week
The Bombay Stock Exchange (BSE) Sensex increased 167.22 points or 0.25% to 65,995.63 during the week ended October 06, 2023.
The BSE Midcap index lost 263.05 points or 0.81% to 32,077.66, while the small-cap index surged 298.35 points or 0.79% to 37,860.58.
On the sectoral front, S&P BSE Consumer Durables was up by 1,168.90 points or 2.58% to 46,528.84, S&P BSE Realty was up by 89.49 points or 1.94% to 4,695.42, S&P BSE Information Technology was up by 578.32 points or 1.80% to 32,643.66, S&P BSE TECK was up by 205.18 points or 1.42% to 14,676.08 were the top gainers on the BSE.
S&P BSE Power was down by 118.29 points or 2.54% to 4,541.31, S&P BSE Metal was down by 551.50 points or 2.38% to 22,654.83, S&P BSE Oil & Gas was down by 321.24 points or 1.69% to 18,704.42, S&P BSE Healthcare was down by 431.66 points or 1.51% to 28,065.86 and S&P BSE PSU was down by 169.32 points or 1.34% to 12,477.57 were the top losers on the BSE.
Outlook for the coming week
In the passing week, Indian equity markets ended in green territory following some positive macroeconomic data. The Monetary Policy Committee (MPC) of the Reserve Bank of India kept the key repo rate unchanged at 6.5 per cent while maintaining the ‘withdrawal of accommodation’ stance.
Traders will be eyeing the Index of Industrial Production (IIP) data for August slated to be announced on October 12. On the same day, Consumer price index (CPI) data for September is scheduled to be announced.
The Wholesale price index (WPI) based inflation data is scheduled to be released on October 13. Meanwhile, Foreign Exchange Reserves and Balance of Trade data is to be out on October 13.
The Parliament-20 meeting will be held from October 12 to 14 and presiding officers of the G20 countries and invitee nations will participate in the deliberations at the new parliament building. This is a meeting relating to speakers and presiding officers of the parliament from all over G20 countries and invitee countries.
With the start of the second quarter earnings season market participants will be watching some important results to be released during the next week. Tata Consultancy Services, HCL Technologies, Infosys, Tata Metaliks, and Avenue Supermarts are major companies to announce their numbers.
On the global front, investors will be eyeing data from the world’s largest economy, the United States (US), starting with Redbook and Consumer Inflation Expectations on October 10 followed by the Producer Price Index, Federal Open Market Committee (FOMC) Minutes on October 11.
Core Inflation Rate, Initial Jobless Claims on October 12, Imports- Exports data, Michigan Consumer Sentiment, Baker Hughes Oil Rig Count on October 13.