Weekly market update, Nov 17, 2023

The India benchmark indices advanced for the third week following the trend in most global equity markets amid positive global cues. Softer than expected inflation data for both domestically and internationally boosted the sentiments with an expectation of halt in prolonged interest rate regime. The S&P BSE Sensex rose 1.37% and NSE Nifty 50 was higher by 1.57% in last week. Midcap and smallcap indices outperformed their largecap peers; “BSE Midcap Index gained 2.5% and the BSE Smallcap Index rose 3.18% in last week”. Most sectors advanced in last week with BSE IT Index gaining over 5%, followed by BSE Auto and BSE Metal.

Meanwhile, As per the data released, The consumer price index-based inflation dropped to 4.87% in Oct 2023 compared to 5.02% in Sep 2023, driven by the effectiveness of various fiscal and monetary policies implemented to stabilize prices and sustain economic growth. The consumer food price index stood to 6.61% in Oct from 6.62% in Sep. India’s wholesale price index (WPI) based inflation continued to remain in the negative territory for seventh consecutive month at -0.52% in Oct 2023 as compared to -0.26% in Sep 2023. Industrial production in India (IIP) increased by 5.8% YoY in Sep 2023, as compared to 10.3% rise in Aug 2023. Production in the manufacturing industry increased by 4.5%, in mining by 11.5% and in electricity by 9.9%.

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