Indian stock market posted new highs in the first week of December as a positive domestic economic outlook improved the participation of investors and traders. Reduced oil prices in the international markets pushed up stocks related to oil and gas companies. Strong performance by FMCG stocks also helped Sensex and Nifty maintain bullish trends in the market.
Analysts are of the opinion that a stronger domestic economy is the major reason why Indian stock markets are able to perform well amidst the high probability of global economic recession. Real GDP in Q2 2022-23 is estimated at Rs 38.17 lakh crore, as against Rs 35.89 lakh crore in Q2 2021-22, showing a growth of 6.3% as compared to 8.4% in Q2 2021-22.
Stocks continued to show strong resistance against global cues on Monday as both Sensex and Nifty 50 posted record highs. Even though profits were trimmed at the closing hours, the Oil and Gas index moved upward by nearly 1.5 per cent.
Tuesday was not much different as indices continued their winning run with gains. FMCG stocks performed well during the second trading day of the week as the domestic economic outlook was looking highly positive. During the trading day, the market also witnessed realty and automobile stocks remaining under pressure from the selloff.
Trading began low-toned on Wednesday which caused worries among investors and traders that the market might snap 6-day winning rally. Towards the end of the trading session, the markets regained strength and posted fresh highs as clues regarding future monetary policy decisions of US Federal reserves made stocks go high up. Also, hopes of China relaxing its COVID-19 restriction got stronger and excited the market.
On Thursday, Indian equity investors cheered the positive comment by the Fed Chair on an interest rate hike. The benchmark indices took the winning rally to eighth straight day. The IT and Media sectors gained the most – both rallied over 2%. FMCG stocks showed signs of reversal as selling pressure hit the index. Auto stocks also suffered losses from the selloff.
The last trading day of December’s first week had something different in stock as capital markets broke an 8-day winning streak. Both Sensex and nifty 50 ended the trading day lower than previous closing levels as both Asian and European capital markets suffered losses. Auto stocks continued to perform badly on Friday similar to their performance for the whole week. Realty stocks made gains despite a fall in the overall market as upgrades in brokerages pushed the stocks up.
