Weekly market update, Sep 09, 2022

This is the best week for the Sensex and Nifty in nearly a month, both rose 1.68% each. Information technology, PSU bank and banking index gained the most in the week. Markets commenced the week on a positive note after the seasonally adjusted S&P Global India Services PMI Business Activity Index rebounded in Aug 2022. The domestic service sector witnessed the desirable combination of stronger growth and softer cost pressures in Aug 2022. Gains were extended following positive cues from global equity markets. Fall in global crude oil prices aided market sentiment as it offered some relief to concerns over the widening trade deficit of the country. Among the broader indices, the BSE Midcap and Smallcap closed higher by 1.86% and 2.53%, respectively. On the sectoral front, all the sectoral indices closed in green. The S&P BSE IT rose the most by 3.48%, followed by S&P BSE PSU and S&P BSE Bankex which rose 2.57% and 2.42% respectively.

Meanwhile, Market analysts expect that strong FIIs’ flow and sharp fall in crude oil prices were key supporting factors for the Indian markets. The direction of the market in the week ahead will be determined by cues from the global markets as well as important macroeconomic data points, such as inflation and manufacturing & industrial production data, to be released next week. Domestic retail inflation is expected to rise to 6.9% in August from 6.71% in July. India will announce its CPI inflation data for August and IIP data for July on September 12, while WPI inflation data will be presented on September 14.

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