Domestic equity benchmarks finished the previous week with slight losses. The Nifty closed below the 17,200 mark. Broader markets, on the other hand, had a sharp sell-off last week. 

After recent statistics revealed rising US inflation, investor confidence plummeted to low bullish levels. Soaring US inflation will almost certainly lead to higher interest rates for a longer period of time, hastening a worldwide recession. 

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The Sensex fell 271.32 points or 0.47% in the week ended Friday, 14 October 2022, to conclude at 57,919.97. The Nifty 50 index dropped 128.95 points, or 0.74%, to 17,185.70.

The BSE Mid-Cap index fell 2.66% to 24,709.86 points. The BSE Small-Cap index dropped 2.26% to 28,522.85.

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How equity benchmarks performed on a weekly basis:

Monday, October 10, 2022

The Sensex fell 200.18 points, or 0.34%, to 57,991.11. The Nifty slid 73.65 points, or 0.43%, to 17,241.

Tuesday, October 11, 2022

The Sensex plummeted 843.79 points, or 1.46%, to 57,147.32. The Nifty lost 257.45 points, or 1.49%, to 16,983.55.

Wednesday, October 12, 2022

The Sensex climbed 478.59 points, or 0.84%, to 57,625.91. The Nifty rose 140.05 points, or 0.82%, to 17,123.60.

Thursday, October 13, 2022

The Sensex declined 390.58 points or 0.68% to settle at 57,235.33. The Nifty fell 109.25 points or 0.64% to end at 17,014.35.  

Friday, October 14, 2022

The Sensex increased 684.64 points, or 1.20%, to 57,919.97. The Nifty surged 189.75 points, or 1.12%, to 17,204.10.

What happened in the Global markets:

India

India’s forex reserves declined by $4.9 billion and the country’s reserves fell for a ninth consecutive week for the week ended September 30, 2022.

The International Monetary Fund lowered its global growth prediction for next year to 2.7%. The IMF reduced India’s GDP growth prediction for the fiscal year 2023 to 6.8%, predicting that the nation will continue to be one of the world’s fastest-growing economies.

Retail inflation in India increased to 7.41% in September from 7% the previous month, according to official statistics released on Wednesday, October 12, 2022. India’s inflation based on the wholesale price index (WPI) stood at 10.7% in September 2022 as against 12.41% recorded in August 2022 and 11.8% in September 2021.

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China

China’s banks extended 2.47 trillion yuan ($344 billion) in new loans in September, up from 1.25 trillion yuan in August, according to a statement released late Tuesday by the country’s central bank.

South Korea

The Bank of Korea lifted its policy rate to 3%, a 50 basis point hike that was expected. In September, South Korea’s inflation rate was 5.6%, which was higher than the central bank’s target.

Europe

The German consumer price index rose by 10% year-on-year in September and 1.9% month-on-month, the country’s Federal Statistical Office reportedly said Thursday.

According to the statistics, yearly EU-harmonized CPI inflation was 10.9% and monthly inflation was 2.2%. 

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United States

The US economy added 263,000 jobs last month, down from the blazing rate seen in 2020 and 2021, according to the Labor Department.

The unemployment rate fell two-tenths of a point to 3.5%. The Federal Reserve’s September meeting minutes, published on Wednesday, indicate that the central bank intends to keep raising interest rates and holding them there until inflation begins to slow.

In the United States, consumer prices rose faster than predicted in September, climbing 0.4% from August and 8.2% from September last year. Core inflation was 6.6% higher year on year, the highest 12-month increase since August 1982.