Indian stock market continued its winning streak during the last week by posting gains amidst high inflation rates and concerns of a global economic slowdown.
Strong performance posted by Asian capital markets and positive news from the USA regarding increasing jobs and easing inflation in some sectors aided in the growth of the Indian stock market during the first trading week of November 2022.
During the last week, the Sensex of the Bombay Stock Exchange gained 990.51 points (1.7 percent) to close the markets at 60950.36. The Benchmark Index of the National Stock Exchange, Nifty 50, gained 330.35 points (1.9 percent) to end trading at 18,117.15 points. Markets across the globe have been showing positive signs in the past week as shares in the Chinese capital markets surged on the possibility of the lifting of COVID-19-related restrictions in the major cities.
Both bulls and bears were active in the market during all trading days which caused the indices to be highly volatile. The show of force between bulls and bears is what ultimately led to posting gains during the week. Sectors such as Infra, Metals, and Railways witnessed strong buying amidst high volatility in the market.
With a gain of (9 percent), Bajaj Finserv emerged as the top gainer on the Nifty 50 of the National Stock Exchange. It was followed by Ultratech Cement (up 7 percent), Hindalco Industries (up 6.3 percent), Divi’s Laboratories (up 5.6 percent), and Shree Cement (up 5.4 percent). Sun Pharmaceutical Industries, Adani Ports and Special Economic Zone, Grasim Industries, JSW Steel, Asian Paints, and State Bank Of India also advanced by over 4 percent. On the other hand, Apollo Hospitals Enterprise, Axis Bank, and Maruti Suzuki India declined 4.6 percent, 4.0 percent, and 2.8 percent, respectively.
Even though the Indian Stock Market posted gains during the week, market analysts and economists are of the opinion that the high volatility might shake up the markets in the coming few weeks. Increasing unemployment rates in the Indian economy and the possibility of more hikes in key interest rates are going to push down the confidence of investors and traders.
According to Deepak Desani of HDFC Securities, Nifty 50 continued to find a way upward in index value despite showing signs of volatility during the trading sessions. He also added that 17899 could be a support for the Nifty while 18179 and later 18287 could be a resistance for the near term.
The latest economic data from the united states suggests that higher interest rates and high inflation levels are beginning to have long-lasting impacts on the economy. Despite posting an increase in the total number of jobs in the country, The USA has been facing an unemployment crisis. Job openings in the country have also gone up now as employers are not able to find enough workers to fill positions.