Indian equity indices gained last week, halting a three-week losing streak. Global equities surged after dismal US data fuelled optimism that the Federal Reserve might soften its aggressive approach.
The stock indices suffered losses at the start and end of the trading week but gained throughout the other trading sessions. The Sensex rose 764.37 points, or 1.33%, in the week ending Friday, October 7, 2022, to conclude at 58,191.29. The Nifty increased 220.30 points, or 1.29%, to 17,314.65.
The BSE Mid-Cap index gained 2.14% to 25,384.80. The BSE Small-Cap index increased 2.57% to 29,182.93.
How equity benchmarks performed on a weekly basis:
The Sensex fell 638.11 points, or 1.11%, to 56,788.81. The Nifty fell 207 points, or 1.21%, to 16,887.35.
The Sensex increased 1,276.66 points, or 2.25%, to 58,065.47. The Nifty rose 386.95 points, or 2.29%, to 17,274.30.
Due to Dussehra, the local stock market was closed on Wednesday, October 5, 2022.
The Sensex climbed 156.63 points, or 0.27%, to 58,222.10. The Nifty jumped 57.50 points, or 0.33%, to 17,331.80.
After a turbulent day on Friday, the headline indices finished nearly flat. The rupee’s record low versus the dollar of 82.43 dampened the sentiment. The Sensex fell 30.81 points, or 0.05%, to 58,191.29. The Nifty declined 17.15 points (0.1%), closing at 17,314.65.
What happened in the Global markets:
In September, the seasonally adjusted S&P Global India Services PMI Business Activity Index was 54.3, indicating an increase for the fourteenth consecutive month.
The World Bank forecasted 6.5% growth for the Indian economy in the fiscal year 2022-23, a 1% decrease from its prior June 2022 projection, citing the weakening global economy.
India collected Rs 1.48 lakh crore in Goods and Services Tax (GST) in September, a 26% rise over the same month last year, according to the finance ministry on October 1.
India’s eight core infrastructure sectors expanded 3.3% in August 2022, the slowest rate in the previous nine months, compared to 12.2% the previous year. The previous low was 3.2% in November 2021.
Bank of Japan’s latest quarterly tankan business sentiment survey revealed that morale among Japan’s big manufacturers deteriorated in the July-September quarter. The headline indicator for major manufacturers’ sentiment was 8, down from 9 in the previous quarter.
The trade deficit in the United States declined slightly more than predicted in August to its lowest level in more than a year, according to the Bureau of Economic Analysis on Wednesday. The trade deficit fell to $67.4 billion, a $3.1 billion decrease from the preceding month.
In September, US manufacturing activity rose at its weakest rate in over 2.5 years. The Institute for Supply Management (ISM) said on Monday that its manufacturing PMI fell to 50.9 this month from 52.8 in August, the lowest value since May 2020.
The job market in the United States remained solid in September, demonstrating its resilience. According to the Bureau of Labor Statistics, companies added 263,000 more jobs in September on a seasonally adjusted basis. This was a decrease from 315,000 in August.
The Reserve Bank of Australia (RBA) increased its cash target rate by 25 basis points to 2.6%, a nine-year high. The interest rate on Exchange Settlement balances was also raised by 25 basis points to 2.50%. Analysts projected a rate hike of at least 50 basis points.