stock market

Mixed results, growing resistance- How Indian stock market fared last week

Benchmark indices of the Indian stock market, Sensex and Nifty 50 witnessed both ups and down during the past week. Continuing volatility in the global capital markets kept domestic institutional investors and traders at bay.

Various economic reports and statements made by European economists regarding possible European Union recession made things worse for traders this week.

The statement made by officials of the Federal Reserve of the United States of America regarding the high chances of aggressive interest rate hikes also put the markets on the back foot.

Amidst all the negative sentiments, the performance of Indian companies in quarterly results and business moves by domestic corporations in the Indian economy helped Indian stock markets show resilience and avoid huge shortfalls in the stock values.

The trading week started with both Sensex and Nifty 50 declining by 1.5% each. Even though the stock markets were trying to recuperate and rally forward from losses of the previous week, the information regarding the possibilities of interest rate hikes in the USA left the market astray.

The ever-growing strength of the US Dollar and the weakening of the Rupee index also contributed to the decline of markets on Monday.

Sensex and Nifty 50 went up on Tuesday as banking and automobile stocks caught the eye of investors and traders. Sensex gained 257.43 points (+0.44%) to close markets at 59,031.30 points while Nifty 50 gained 86.80 points (0.50%) to close the markets at the last trade price of 17,577.50.

Reports regarding the upcoming launch of the new facelift version of Mahindra XUV300 by Mahindra and Mahindra pushed auto stock upwards during the trading day.

The then exited negative sentiments towards IT stock heavily impacted the IT stock in India as almost all such stocks suffered huge losses.

After ending the day on a positive note on Tuesday, markets had a narrow escape on Wednesday to close markets just above the red line.

Increasing oil prices in the international markets and continued concerns regarding interest rate hikes in the United States impacted markets heavily in India.

Resilience shown by Asian and European markets and strong performance of foreign institutional investors in Indian stocks kept Sensex and Nifty 50 from tumbling down.

As expected by market analysts, both the indices suffered losses on Thursday as Sensex declined on Thursday by 310.71 (-0.53%) points to close markets below the 59k mark and Nifty 50 declined by 82.50 points.

Reservation among investors due to the expiry of monthly future and options contracts, along with the close rally of markets near negative zones made the fall almost predictable in one sense.

Sensex and Nifty 50 made small gains on Friday to end the trading week as metal and capital goods stocks became top gainers in sectoral indexes.