Domestic equities saw slight gains during a week highlighted by significant volatility in global markets. The Nifty finished just above 15,750. The indices gained ground in two of the week’s five trading sessions.
The Sensex gained 179.95 points, or 0.34%, in the week ending July 1, 2022, to close at 52,907.93. The Nifty 50 index rose 52.8 points, or 0.34%, to 15,752.05. The BSE Mid-Cap index gained 0.26% to 21,858.93. The BSE Small-Cap index rose 1.2% to 24,807.74.
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How equity benchmarks performed on a weekly basis:
Monday, June 27, 2022
The major equity gauges saw significant advances on Monday. The S&P BSE Sensex advanced 433.30 points, or 0.82%, to 53,161.28. The Nifty 50 index rose 132.80 points, or 0.85%, to 15,832.05. In three sessions, the Nifty has gained 2.72%.
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Tuesday, June 28, 2022
The major market indices recovered early losses and closed the day with minor gains. The S&P BSE Sensex increased 16.17 points, or 0.03%, to 53,177.45. The Nifty 50 rose 18.15 points, or 0.11%, to 15,850.20.
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Wednesday, June 29, 2022
Following a turbulent trading day on Wednesday, the domestic equity benchmark closed with minor losses. The S&P BSE Sensex, the barometer index, fell 150.48 points, or 0.28%, to 53,026.97. The Nifty 50 fell 51.10 points, or 0.32%, to 15,799.10.
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Thursday, June 30, 2022
After a volatile trading day on Thursday, the main indexes finished flat. The S&P BSE Sensex, the barometer index, fell 8.03 points, or 0.02%, to 53,018.94. The Nifty 50 fell 18.85 points, or 0.12%, to 15,780.25.
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Friday, July 1, 2022
The key indicators reversed early declines and closed with slight losses on Friday. The benchmark index, the S&P BSE Sensex, fell 111.01 points, or 0.21%, to 52,907.93. The Nifty 50 dropped 28.20 points, or 0.82%, to 15,752.05 points.
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What happened in the Global markets:
India
The Finance Ministry said that the government will hike taxes on some products and services to 18% from the current 12% following the two-day 47th GST Council Meeting, which will take effect from July 18, 2022.
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The GST Council also postponed a decision on imposing a 28% tax on casinos, online gaming, horse racing, and lotteries awaiting more talks with stakeholders, according to Union Finance Minister Nirmala Sitharaman.
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The Index of Eight Core Industries increased by 18.1% in May of this year, compared to 16.4% in the same month last year. Cement, coal, fertilisers, electricity, refinery products, steel, natural gas, and crude oil output rose in May 2022 compared to the previous year.
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According to Finance Minister Nirmala Sitharaman on Friday, the Goods and Services Tax (GST) collection increased to Rs 1.44 lakh crore in June, marking a 56% rise over the same month last year. In May, GST revenue was approximately Rs 1.41 lakh crore.
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Meanwhile, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 53.9 in June, lower than 54.6 in May. The most recent data indicated the slowest rate of growth since September of last year.
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Moreover, the government has levied a specific extra excise duty/cess on petrol and diesel exports of Rs 6 per litre and Rs 13 per litre, respectively. A windfall tax of Rs 23,250 per tonne has been levied on crude. Exports of Aviation Turbine Fuel are additionally subject to special additional excise duty (SAED) of Rs 6 per litre.
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China
The Caixin/Markit Manufacturing Purchasing Managers’ Index for June in China was issued on Friday. It was 51.7, which is higher than the 50-point threshold separating growth from contraction. This compares to a reading of 48.1 last month. Following a dramatic drop in April, profits for China’s industrial enterprises decreased at a slower pace in May. Profits decreased 6.5% year on year, lower than the 8.5% drop in April, according to National Bureau of Statistics statistics (NBS).
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Japan
The quarterly tankan business sentiment survey conducted by the Bank of Japan found that the mood of Japan’s major manufacturers deteriorated from April to June. The large manufacturers’ headline mood index stood at 9, down from the preceding quarter’s level of 14. In June, Japan’s factory activity growth slowed as a result of supply interruptions caused in part by China’s harsh COVID-19 restrictions. The final au Jibun Bank Japan Manufacturing purchasing managers’ index (PMI) dropped to a seasonally adjusted 52.7 in June from a final 53.3 in the preceding month. According to government figures, retail sales in Japan increased 3.6% year on year in May, marking the third straight month of growth.
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South Korea
According to a survey by the Bank of Korea, the consumer confidence index for South Korea dropped, coming in at 96.4 for June 2022, 6.2 points below the reading for May.
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United States
Consumer expenditure in the United States increased less than predicted in May, as automobiles remained scarce and higher costs prompted reductions in purchases of other products. In May, consumer spending increased by 0.2%, the weakest increase in five months. The data for April was revised downward to reflect that outlays increased by 0.6% rather than 0.9% as previously reported.
