Domestic stock indices finished the week with slight losses as global inflation continues to increase. Inflationary pressures pave the way for global central banks to raise interest rates sharply.

The major indices suffered losses in four of the five trading sessions of the week, which was distinguished by significant volatility.

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The Nifty retained its critical 16,000 level despite dropping below it earlier in the week. The Sensex fell 721.06 points, or 1.32%, to 53,760.78 in the week ending July 8, 2022. The Nifty fell 171.4 points, or 1.06%, to 16,049.20.

The BSE Mid-Cap index increased 0.88% to 22,854.62. The BSE Small-Cap index rose 0.54% to 25,779.56.

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How equity benchmarks performed on a weekly basis:

Monday, July 11, 2022 

After a tumultuous Monday session, the key indices finished with marginal losses. The Sensex, fell 86.61 points, or 0.16%, to 54,395.23. The Nifty fell 4.60 points, or 0.3%, to 16,216.

Tuesday, July 12, 2022 

On Tuesday, the major market indices finished with significant losses due to unfavourable global signals. The Sensex fell 508.62 points, or 0.94%, to 53,886.61. The Nifty slid 157.70 points, or 0.97%, to 16,058.30.

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Wednesday, July 13, 2022 

The market finished near the day’s bottom on Wednesday with minor losses. The Sensex was down 372.46 points, or 0.69%, to 53,514.15. The Nifty dropped 91.65 points or 0.57% to 15,966.65.

Thursday, July 14, 2022 

On Thursday, the main indices finished with slight losses due to bearish global signals.  The Sensex fell 98 points, or 0.18%, to 53,416.15. The Nifty dropped 28 points, or 0.18%, to 15,938.65.

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Friday, July 15, 2022 

On Friday, the major market indices finished near the day’s high with slight gains. The Sensex increased 344.63 points, or 0.65%, to 53,760.78. The Nifty rose 110.55 points, or 0.69%, to 16,049.20.

What happened in the Global markets:

India

In May 2022, India’s industrial production, as measured by the Index of Industrial Production (IIP), increased by 19.6%. In April 2022, IIP increased by 7.1%. In May, the manufacturing sector grew by 20.6%. The mining sector increased by 10.9%, while the electricity sector increased by 23.5%.

The headline retail inflation rate in India, as measured by the Consumer Price Index (CPI), was 7.01% in June 2022, from 7.04% in May 2022, according to statistics issued by the Ministry of Statistics and Programme Implementation on July 12, 2022.

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In India, the wholesale price index (WPI) inflation rate was 15.18% in June 2022, down from 12.07% in June 2021. The WPI increased 15.88% in May 2022, compared to 15.38% in April. WPI for July 2022 will be released on August 16, 2022. 

India’s merchandise exports in June 2022 were $40.13 billion, up from $32.49 billion in June 2021, representing a 23.52% increase. Merchandise imports in June 2022 were $66.31 billion, a 57.55% jump from imports of $42.09 billion in June 2021.

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China

China’s second-quarter GDP fell short of estimates. China’s GDP increased by 0.4% in the second quarter, compared to 4.8% in the first. The second-quarter GDP figure is China’s worst since the first quarter of 2020 when the Covid pandemic first struck.

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South Korea

For the first time, the Bank of Korea hiked interest rates by 50 basis points, raising the rate to 2.25%. This is aligned with analyst forecasts.

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United Kingdom

There is political instability in the United Kingdom following Prime Minister Boris Johnson’s announcement last week that he will resign as Conservative Party leader. Johnson has stated that he will remain in the position until a replacement is selected, and a number of high-profile Conservatives have declared leadership ambitions over the weekend. According to the Office for National Statistics, the United Kingdom’s economy increased unexpectedly in May, with output increasing by 0.5%.

Singapore

Singapore’s central bank tightened monetary policy in an off-cycle move on Thursday, saying the decision will curb inflation as the city-state joins other countries in fighting increasing price pressures.

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United States

According to figures issued by the Bureau of Labor Statistics on Friday, the United States saw stronger-than-expected job growth in June, with the economy adding 372,000 jobs. The increases in June were a little slowdown from the downwardly revised 384,000 in May. The April total was reduced to 368,000.

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Unchanged from May and in accordance with expectations, the unemployment rate was 3.6%. In the United States, inflation rose faster than expected in June. The consumer price index increased 9.1% year on year, the highest rise since the end of 1981, according to Labor Department statistics released Wednesday.

The widely regarded inflation indicator rose 1.3% from the previous month, the highest since 2005, amid rising fuel, shelter, and food costs.