The major equity indices extended their winning streak for the third week. The Nifty finished just below the 17,400 mark. The major indices saw increases in four out of the last five trading days.
Investors’ sentiment was boosted by falling commodity prices, easing supply-side constraints, and some solid purchasing from foreign institutional investors (FIIs) in recent sessions.
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The Sensex gained 817.68 points, or 1.42%, in the week ending Friday, July 29, 2022, to close at 58,387.93. The Nifty 50 index rose 239.25 points, or 1.39%, to 17,397.50. The BSE Mid-Cap index increased 1.78% to 24,479.05. The BSE Small-Cap index rose 2.03% to 27,605.08.
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How equity benchmarks performed on a weekly basis:
The equity benchmarks finished around the day’s high after posting strong gains. The S&P BSE Sensex increased 545.25 points, or 0.95%, to 58,115.50. The Nifty 50 rose 181.80 points, or 1.06%, to 17,340.05.
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After a tumultuous day, the domestic equity gauges finished just above the flat line. The S&P BSE Sensex increased 20.86 points, or 0.04%, to 58,136.36. The Nifty 50 gained 5.40 points, or 0.03%, to 17,345.45.
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The benchmark indices recovered intraday losses and closed with slight gains. The S&P BSE Sensex advanced 214.17 points, or 0.37%, to 58,350.53. The Nifty 50 index rose 42.70 points, or 0.25%, to 17,388.15.
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The S&P BSE Sensex, the barometer index, fell 51.73 points, or 0.09%, to 58,298.80. The Nifty 50 fell 6.15 points, or 0.04%, to 17,382.
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The S&P BSE Sensex increased 89.13 points, or 0.15%, to 58,387.93. The Nifty 50 index rose 15.50 points, or 0.9%, to 17,397.50.
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What happened in the Global markets:
The finance ministry said on August 1, that India collected Rs 1,48,995 crore in Goods and Services Tax (GST) in July, a 28% increase over the same month the previous year. Since the implementation of the GST, this is the second-highest revenue.
The July GST collection was 3% higher than in June. Furthermore, India’s eight core sectors grew by 12.7% in June, dropping from an upwardly revised 19.3% in May, according to the commerce ministry.
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In June, output increased in seven of the eight core sectors. However, factory activity in India grew at its fastest rate in eight months in July.
The Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, jumped to 56.4 in July from June’s 53.9, remaining above the 50-level separating growth from contraction for a thirteenth month.
The S&P Global India Services PMI Business Activity Index, which is seasonally adjusted, increased from 59.2 in June to 55.5 in July, marking the highest mark in more than 11 years.
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The S&P Global India Composite PMI Output Index decreased to 56.6 in July from 58.2 in June, the slowest growth since March.
According to official figures released on Tuesday, India’s exports fell 0.76% to $35.24 billion in July, while the trade deficit tripled to $31.02 billion.
In July, imports increased to $66.26 billion from $46.15 billion in the same month the previous year. From April-July 2022-23, the trade deficit was $100.01 billion.
The RBI‘s Monetary Policy Committee (MPC) voted unanimously on Friday to hike the policy repo rate by 50 basis points to 5.40% based on an assessment of the existing and emerging macroeconomic situation.
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As a result, the standing deposit facility (SDF) rate has been adjusted to 5.15%, while the marginal standing facility (MSF) rate and the Bank Rate have been adjusted to 5.65%.
In its policy statement on Friday, the MPC retained its 7.2% real GDP growth forecast for the current fiscal year 2022-23, as well as the quarterly growth forecast numbers.
The committee also maintained its retail inflation forecast for the current fiscal year at 6.7%, up from 5.7% in the last monetary policy review in June.
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China‘s factory activity fell in July as the virus outbreak weighed on demand. The official manufacturing purchasing managers’ Index (PMI) fell to 49.0 in July.
The official non-manufacturing PMI dipped to 53.8 in July from 54.7 in June. The official composite PMI, which covers manufacturing and services, dropped from 54.1 to 52.5.
A private-sector poll released on Wednesday revealed that China’s services activity rose in July at the sharpest rate in 15 months as relaxed COVID regulations increased consumer confidence.
The Caixin Services Purchasing Managers’ Index in China rose to 55.5 in July from 54.5 in June. It’s also the highest level since April 20, 2021.
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In order to battle runaway inflation, the Bank of England (BoE) raised interest rates by 50 basis points to 1.75%. The move was largely anticipated by economists and financial markets, and it comes amid rising pressure to accelerate interest rate increases.
The Bank of England hiked interest rates by the highest in 27 years, despite warnings of a prolonged recession, as it hastened to contain a spike in inflation that is now expected to surpass 13%. Responding to an increase in energy costs caused by Russia’s invasion of Ukraine, the Bank of England’s Monetary Policy Committee voted 8-1 to raise the Bank Rate from 1.25% to 1.75%, its highest level since late 2008.
The MPC now forecasts that the United Kingdom will enter a five-quarter recession in 2022 and 2023, as real household post-tax income falls steeply in 2022 and 2023 and consumption begins to drop.
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The services industry in the United States unexpectedly stepped up in July, with new orders increasing steadily. The ISM’s non-manufacturing PMI increased to 56.7 in July from 55.3 in June, reversing a three-month dip.
