Weekly market update, Nov 11, 2022

Indian equity indices, S&P BSE Sensex and NSE Nifty 50 hit their respective 52-week highs, joining a global rally in equities. Globally, appetite for riskier assets improved after the slower-than-projected U.S. CPI numbers raised hopes that the Fed may slow its aggressive rate hikes. The S&P Sensex gained 1.39% to 61,820, a fresh 52-week high, while the Nifty jumped over 1.28% to 18,357. Among the broader indices, S&P BSE Midcap and Smallcap have declined 0.71% and 0.42%, respectively. On the BSE sectoral front, S&P BSE IT rose the most by 3.02% followed by S&P BSE Teck and S&P BSE Bankex which rose 2.83% and 1.66% respectively. S&P BSE Healthcare fell the most by 2.50%.

Indian markets, in sync with the rupee, have also outperformed emerging market peers in the past year. The MSCI Emerging Markets Index has fallen just over 25% year-to-date, while MSCI All Country World Index, a gauge including stocks from 23 developed and 24 emerging markets, has declined around 19%. During the same period, Sensex and Nifty have gained 4.06% and 3.83%, respectively. The rally was largely fuelled by gains in auto, financials and energy stocks in the last 52 weeks.

Amidst a rebound in international markets, the Nifty is getting closer to its all-time high; its previous all-time high was 18604 on October 21. The Indian equity markets are constantly receiving funding from FIIs, and Friday marked their 11th straight trading session of purchases. As US bond yields and the dollar index decline, they might assist in the market reaching a new record high. Last week saw notable strength for the rupee as well. The sentiment will continue to be driven by the movement of the world markets. The market will be keeping an eye on our domestic inflation statistics.

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