Weekly market update, Dec 08, 2023

The India benchmark indices rose for six straight weeks on the back of strong macroeconomic data, a drop in oil prices and the hawkish rate pause by the Reserve Bank of India. The Nifty 50 and the S&P Sensex  gained over 3% this week and outperformed most global equity markets. The broader market indices underperformed the larger peers; the S&P BSE MidCap Index was up 2.03%, whereas S&P BSE SmallCap Index was 1.33% higher. On sectoral front, Eleven out of the 13 sectors advanced this week, with Nifty Energy and banking gaining the most this week.

Meanwhile, RBI kept the repo rate unchanged at 6.50% in its Monetary policy citing strong GDP growth and easing inflation. RBI also raised the GDP growth expectation by 50bps to 7% for FY24 and kept inflation forecast unchanged at 5.4%. It is expected that the RBI’s decision would help in the growth of the economy.

Analysts expect that markets to remain range bound over policy decisions by global banks in the coming week. Investors will also closely monitor key domestic macroeconomic data alongside foreign capital inflows and global indicators.

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