Weekly market update, Sep 02, 2022

India’s equity indices closed little unchanged in a volatile week. The Sensex closed 0.05%, lower at 58,803, and Nifty 50 closed 0.11%, lower at 17,539. Markets started the week on a negative note after the U.S. Federal Reserve chief at a global central bank conference indicated that the U.S. central bank will continue to raise interest rates to fight inflation. Losses were extended after a major global credit rating agency lowered its gross GDP growth forecast for India to 7.7% for 2022. However, most of the losses were neutralised on bargain hunting with upbeat domestic macroeconomic data and fall in global crude oil prices. Among the broader indices, the BSE Midcap and Smallcap closed higher by 1.37% and 1.35%, respectively. On the sectoral front, S&P BSE IT fell the most by 3.23%, followed by S&P BSE Metal that fell 2.06% . The S&P BSE Realty rose the most by 3.05% due to rising consolidation, improvements in operating cash flow, robust demand and declining inventory in the sector.

Indian equity markets are outperforming most of their global peers and trying to show resilience despite weak global cues. In the coming week, As the there are no major domestic events, the direction of global markets will play an important role in the direction of our market. The flows of FIIs will also be critical because they are still not selling in the cash market despite weak global markets, a rise in the dollar index and US bond yields. However a sharp fall in crude oil prices amid global slow-down worries is acting as a tailwind for our market.

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