A weak start to the result season by the IT sector’s subdued revenue guidance, combined with an uptick in crude oil prices affected the broad market trend.
As many as 36 stocks in the Nifty 50 index delivered a positive return for investors. With a weekly gain of 7.2 per cent, Tata Motors emerged as the top gainer in the index.
Sector-wise, the BSE Realty index surged the most (4.1 per cent) during the week gone by. While BSE Auto and BSE Metal indices have registered a gain of 2.9 per cent, and 2.4 per cent, respectively.
Indian equity benchmarks managed to end the passing week with half a per cent gain as the IMF raised India’s GDP forecast, though geopolitical tensions between Israel and Palestine kept gains in check.
The markets made a negative start as traders remain concerned amid escalating geopolitical tensions in the Middle East and surging crude oil prices overseas. However, the market turned optimistic after the International Monetary Fund (IMF) raised its 2023-24 GDP growth forecast for India for the second time in three months, taking it closer to the 6.5 percent predicted by Indian authorities. Besides the National Sample Survey Office (NSSO) data showed the unemployment rate for persons aged 15 years and above in urban areas declined to 6.6 per cent during April-June 2023 from 7.6 per cent a year ago.
These signals led the BSE Sensex to surge 287 points, or 0.44 per cent, at 66,283 during the week ended on October 13, while the Nifty jumped 98 points, or 0.5 per cent, to 19,751. Sector-wise, the BSE Realty index surged the most (4.1 per cent) during the week gone by. While BSE Auto and BSE Metal indices have registered a gain of 2.9 per cent, and 2.4 per cent, respectively. On the other hand, the BSE Information Technology index has registered a weekly decline of 1.3 per cent.
As many as 36 stocks in the Nifty 50 index delivered a positive return for investors in the week. With a weekly gain of 7.2 per cent, Tata Motors emerged as the top gainer in the index. It was followed by Coal India (7 per cent), Tata Consumer Products (4.4 per cent), Grasim Industries (4.3 per cent), and Maruti Suzuki India (4.1 per cent). Shree Cement, and Bharti Airtel also advanced by over three per cent. On the other hand, Infosys, State Bank of India, and Adani Ports and Special Economic Zone declined 3.2 per cent, 3 per cent, and 2 per cent, respectively.
Market Macros
Vinod Nair, Head of Research at Geojit Financial Services said, The Indian market rebound from the sluggish start, propelled by positive expectations on Q2 earnings and moderation in global bond yield despite concerns over the Middle East conflict continues to hover. However, the release of higher-than-anticipated US inflation data and the resulting increase in treasury yields marginally offset the positive trend by the end of the week.
He added While domestic factors such as a significant drop in CPI data and impressive industrial production helped to sustain the broad optimism. Weak start to the result season by IT sector’s subdued revenue guidance, combined with an uptick in crude oil prices affected the broad market trend".
On the other hand, the realty sector performed well, fuelled by significant project launches and an uptick in pre-sales, buoyed by the onset of the festive season. Looking ahead, investors will closely monitor the further commencement of the Q2 earnings season which has high expectations like sectors Auto, Finance and Oil & Gas”, Nair said.
Technical Outlook
Rupak De, Senior Technical analyst at LKP Securities, said that the bulls were able to protect the level of 19600 during the day, thanks to the strong open interest (OI) build-up at the 19,600 strike price by put writers. The strength may continue as long as the index remains above 19600.
“Only a decisive fall below 19600 might trigger serious long unwinding in the market, till then a buy-on-dips strategy to favor the market. On the higher end, resistance is visible at 19850; above 19850, the index might move towards 20000." De said.
Also read: TCS, Infosys & HCL headcounts shrink by over 16,000 in Q2
Also read: HDFC Life Q2 profit jumps 15% to Rs 377 crore; stock flat