The following week was volatile in the stock markets as the Central Bank of India (RBI) announced a 50 basis point rise in interest rates and clearly indicated that even tighter financial conditions were ahead, in light of rising domestic inflation.
Continued sales by foreign securities investors (FPIs) of Indian equities also pushed down stock indices, leading to their first weekly loss in a month.
BSE Sensex and Nifty50 lost 2.6 percent and 2.3 percent, respectively, in the last five trading days.
Broader markets did not fare as badly as the main indices, with the BSE Midcap and Smallcap indices falling by 1.2 per cent and 2 per cent respectively.
In the industry, the S&P BSE Bankex fell by 2.3 per cent while the BSE IT index fell by 2.8 per cent. The BSE Metal index decreased by 2.7 percent while the real estate index decreased by 1.6 percent.
The BSE Oil and Gas Index, on the other hand, rose 0.6 percent this week, probably strengthened by a sharp rise in global crude oil prices.
According to the head of HDFC Securities, Retail’s retailer, Deepak Jasani, the main reasons for last week’s fall in stock prices were the non-stop FII sales and the fact that traders both used the opportunity to lock in profits each time indices rose.
Even when stock benchmarks fell, some stocks managed to return handsome returns to investors this week.
Six BSE500 shares rose more than 10 percent and more during the week, while 15 shares rose more than 5 percent.
increased by 39.33 percent as analysts expect the refinery and marketing company to return a large profit due to the increase in fuel prices for many years. As the war in Ukraine’s supply bottlenecks lead to an increase in the cleaning margin to a maximum of many years, experts are positive towards the company, which is an independent cleaning manufacturer.
India’s oil rose 19.68 percent in the previous week, following a rise in global oil prices, which led to a recovery in margins.
India’s oil stocks have reached most of the targets set by brokers, yielding more than 100 percent returns last year. The stock on Thursday reached a 52-week high as it jumped over 8 percent to 805 rupees.
Haitong Securities said in its monthly report on the hydrocarbon sector that the gross profit margin (GRM) of cleaning companies is breaking all barriers.
increased by 11.99 percent after saying that it would invest 500 million rupees in the home financing company, which is seeking to raise capital through privileged issuance of shares.
The Board of Directors of the public sector has approved the Bank’s participation in the proposed pre-emptive rights issue in the amount of up to ISK 500 million to keep the Bank’s holding in the mortgage lender at 30 per cent or less than 26 per cent.
A 26 percent stake would help PNB maintain its position as project manager in PNB Housing Finance.
Other counters that surpassed last week were
, which rose by 17.8 percent and rose by 13.25 percent. increased by 10.22 percent but increased by 9.4 percent.
The shares that rose by 5-9 percent last week were
Biocon, Bajaj Auto,, RBL Bank, Computer Age Management, ONGC, and.
82 shares of BSE500 fell 5-13 percent last week.
Five stocks fell more than 10 percent during the week, with
and lost 10.5 and 10.7 percentage points, respectively. and lost 11.7 percentage points and 12.02 percentage points, respectively.
Gujarat Gas was the worst performer this week among BSE500 stocks, down 13.1 percent. The counter has been damaged after UBS gave the stock a sales rating and lowered its target to 400 rupees.
According to Yesha Shah, head of equities research at Samco Securities, inflation both domestically and globally, and the US Federal Reserve’s interest rate decision, would be a key factor driving the market forward next week.
“At home, inflationary printing of consumer prices and WPI will be the main headline next week. Market participants will analyze well whether import duties and interest rate hikes have had a positive effect on inflation figures, “she said.
“In the face of growing macroeconomic uncertainty, investors are advised to exercise great caution until markets find their direction in a decisive manner.
(Disclaimer: Recommendations, suggestions, opinions and opinions given by experts are their own. This does not represent the views of the Economic Times)
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