Increasing concerns of global economic slowdown and possible recession do not seem to slow down the Indian stock market as benchmark indexes of the Indian stock exchange, Sensex and Nifty 50 ended the trading week high considerable gains.
Sensex, the benchmark index of the Bombay Stock Exchange gained 2.39 percent in index value over the last week to close the trading week at 59,307.15. Meanwhile, Nifty 50 of the National Stock Exchange gained by 2.27 percent in index value to conclude trading at 17576.30 points.
Investors and traders pushed hard for fundamentally strong stock this week as outside economic factors did not have much impact on how investors trade in the Indian stock market. Stocks of IT, FMCG, and Banking companies were the biggest gainers this week as the stocks from these sectors continued to be most in demand among investors.
Stronger financial growth posted by Indian companies such as ITC, Axis Bank, HDFC Bank, Nestle India, etc also was a major factor in Investors eyeing stocks with fundamentally strong numbers.
In the past week, the Reserve Bank of India published its monthly bulletin for the last month. In the monthly bulletin, the central bank of the country stated that the Indian economy is projected to grow over the next quarters regardless of how the global economic scenario will turn out. The Reserve Bank of India also stated in its monthly bulletin that the fight against inflation would be a dodgy and prolonged one.
The positive outlook for the Indian economy provided by the Reserve Bank of India also increased confidence within Indian stock investors to purchase equity in the Indian stock market.
As many as 38 stocks in the Nifty 50 index delivered a positive return to investors in the passing week. With a gain of (12.5 percent), Axis Bank emerged as the top gainer in the index. It was followed by Nestle India (up 7.2 percent), State Bank of India (up 6.4 percent), SBI Life Insurance Company (up 5.6 percent), and ICICI Bank (up 4.3 percent).
Various stock analysts believe that the stock market will depend upon global cues and global economic conditions over the next week as inflation is becoming a headache for several major economies. Central Banks in Europe and American countries would be pushing forward with interest rate hikes which would have serious impacts on the Indian stock market. Recently, inflation in the United Kingdom touched record high levels of 40 years, which would trigger an aggressive response from the central banks.