Week in review: Sensex, Nifty rise as investors weigh economic data

Domestic market indexes rose for the third week in a row as investors weighed inflation and economic data. The developments in the Russia-Ukraine war stayed in the spotlight.

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The Nifty finished above 16,550. The Sensex gained 884.57 points, or 1.61%, in the week ending June 3, 2022, to conclude at 55,769.23. The Nifty rose 231.85 points, or 1.42%, to 16,584.30. The BSE Mid-Cap index gained 1.14% to 22,774.98. The BSE Small-Cap index rose 2.98% to 26,384.14. 

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How equity benchmarks performed on a weekly basis:

Monday, May 30, 2022 

On Monday, the benchmark indexes finished with strong increases. Sensex increased 1041.08 points, or 1.90%, to 55,925.74.Nifty rose 308.95 points, or 1.89%, to 16,661.40. 

Tuesday, May 31, 2022 

On Tuesday, the benchmark indexes finished with minor losses. Sensex fell 359.33 points, or 0.64%, to 55,566.41.  Nifty dropped 76.85 points, or 0.46% to 16,584.55.

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Wednesday, June 1, 2022 

On Wednesday, the leading equity indices closed with minor losses. Sensex, fell 185.24 points, or 0.33%, to 55,381.17. Nifty dropped 61.80 points, or 0.37%, to 16,522.75. 

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Thursday, June 2, 2022 

On Thursday, the domestic stock gauges finished with robust increases.  Sensex increased 436.94 points, or 0.79%, to 55,818.11. Nifty gained 105.25 points, or 0.64%, to 16,628.

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Friday, June 3, 2022 

On Friday, the domestic market indices erased intraday gains and finished with minor losses. Sensex lost 48.88 points, or 0.09%, to 55,769.23. Nifty fell 43.70 points or 0.26% to 16,584.30.

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What happened in the Global markets:

India

GST revenues fell 16% to Rs 1.41 lakh crore in May, from a record high of Rs 1.68 lakh crore in April, according to statistics issued by the finance ministry on June 1.

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The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 54.6 in May, little changed from 54.7 in April, pointing to a sustained recovery across the sector.

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India’s GDP grew by 4.1% year over year in Q4 FY22, compared to 5.4% in Q3 FY22. Gross Value Added (GVA) increased 3.9% year on year in the fourth quarter, excluding the effects of subsidies and indirect taxes. GDP increased 8.7% year on year over the whole fiscal year, contrary to a 6.6% decrease in FY21. GVA increased by 8.1% year on year in FY22, following a decline of 4.8% in FY21.

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In April 2022, the combined Index of Eight Core Industries was 143.2, up 8.4% (provisional) from the Index in April 2021.

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India’s merchandise exports increased by 15.46% to $37.29 billion in May 2022, owing to strong performance by sectors like petroleum products, electronic goods, and chemicals, despite a $23.33 billion trade deficit during the month. Imports increased by 56.14% to $60.62 billion during the month. The rise was led by a rise in petroleum and crude oil imports by 91.6% to $18.14 billion.

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China

China’s official manufacturing Purchasing Managers’ Index for May was 49.6, up from 47.4 in April but still below the 50-point threshold that distinguishes expansion from contraction. On Wednesday, China’s Caixin/Markit manufacturing Purchasing Managers’ Index for May came in at 48.1, an increase above April’s reading of 46 but still below the 50-level separating growth from contraction.

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Japan

Japan’s factory production fell sharply in April as a result of China’s COVID-19 lockdowns and broader supply disruptions. Factory output fell 1.3% in April compared to the previous month, according to official figures released on Tuesday. Separate figures show that retail sales increased 2.9% year on year in April, the largest increase since May 2021.

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Europe

According to data, German EU-harmonized inflation was 8.7% year on year in May, up from 7.8% in April. French inflation also exceeded forecasts in May, reaching a new high of 5.8%, up from 5.4% in April, according to preliminary statistics released on Tuesday.

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Following negotiations at a conference in Brussels, the European Union agreed to a ban on most Russian oil imports. The president of the European Council, Charles Michel, hailed the deal as a “remarkable achievement”, after tweeting on Monday night that sanctions will immediately impact 75% of Russian oil imports, “cutting a huge source of financing for its war machine”. pipeline to their territory.

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United States

In the United States, the core personal consumption expenditures price index increased 4.9% in April, falling from 5.2% the preceding month.  Consumer expenditure in the United States increased more than predicted in April, as consumers increased their purchases of goods and services. Last month, consumer expenditure climbed by 0.9%. The March data was revised higher, with outlays racing at 1.4% rather than 1.1% as initially reported.