On Friday, the Sensex closed at 59,462.78, up 130.18 points or 0.22%. While Nifty 50 rose 39.15 points or 0.22%. Oil and gas along with metal stocks were the major drivers of the index, while banking Shares also made some notable contributions to the uptrend. IT and healthcare stocks declined.
on the interbank foreign currency In the market on Friday, the Indian rupee closed at 79.74, down by 12 paise from the previous day against the US dollar. This was amid a strong greenback against a basket of currencies and a spike in crude oil prices, offsetting the impact of buying sentiment in domestic equities.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The return of FIIs and a fall in the dollar index supported the market rally. While metals and oil and gas showed buying interest, IT and pharma weighed in on sentiments. Oil and gas stocks were in focus as the government gave city gas operators from some natural gas industries in an effort to reduce prices of CNG and piped cooking gas.
While Shrikant Chauhan, Head of Equity Research (Retail) at Kotak Securities said, “Equity markets continued to perform resiliently during the week. Major benchmark indices like BSE-30 and Nifty-50 have given positive returns this week. The market rally has been broad-based with gains in BSE Midcap, BSE Smallcap and most of the sectoral indices. The sectoral index’s performance was led by BSE Metals and BSE Capital Goods indices, while some defensive sectors underperformed the broader market.
The market cap of BSE remained approx. 275.08 lakh crore as on 12th August, which is an increase of 3,77,107.35 crore from the market valuation of 271.31 lakh crore last week ended August 5
The top 10 companies in terms of market valuation account for more than 27% of the total market capitalization of BSE.
These are the top 10 giants – Reliance Industries ranked top by market capitalization 17.81 lakh crore, followed by TCS valuation 12.44 lakh crore, and with HDFC Bank over cap 8.25 lakh crore. Infosys and Hindustan Unilever ranked third and fourth with a market cap of approx. 6.71 lakh crore and 6.10 lakh crore.
Other companies are – ICICI Bank whose valuation is approx. 6.09 lakh crore, more than SBI 4.73 lakh crore, HDFC approx 4.46 lakh crore, more than Bajaj Finance 4.42 Lakh Crore, and with a market cap of more than LIC 4.31 lakh crore.
This week, the Sensex has gained about 1,075 points and the Nifty 50 has gained a little over 300 points. Overall, both benchmarks advanced about 2% each.
“Global equity markets continued their strong rally as US CPI softened in July. In India, FPI inflows were positive this week,” Chauhan said.
Foreign Portfolio Investors (FPIs) have invested in 22,453 crore in the Indian equity market so far in August – which is the biggest buy so far in 2022. FPIs have been net sellers in the first six months of 2022, and have emerged as buyers since July. FPI invested 4,989 crore in equity in the month of July.
What to expect next week?
Trading in the stock market will be closed on Monday due to Independence Day celebrations.
Mitul Shah- Head of Research, Reliance Securities said, “India’s CPI inflation declined to 6.71% in July from 7.01% in June. However, rising prices affected the market sentiment. Several countries, including India, for July Will release WPI data. Economic sentiment in Europe, China’s industrial output, unemployment in the UK and US are other key factors that are likely to determine the trajectory of domestic and international markets. The Fed is expected to keep inflation in the US as long as It will continue to hike rates until the pressure on the U.S. economy subsides significantly. In the coming week, the central bank will release the minutes of the Federal Open Market Committee (FOMC) meeting held in July.”
Shah said, “Earnings season has largely come to an end with strong revenue growth amid rising commodity prices. For 1QFY23, NSE 500 companies’ revenue grew by 39%, while EBITDA and PAT grew by 19 per cent respectively. % and increased by 23%. Nifty up 16%. June low, we expect market to remain volatile in near term, while strong economic rebound, normalized commodity prices, inflation within target range and by 2HFY23 Better visibility is expected, which will turn Nifty valuations closer to historical average. Our FY23 target for Nifty is 19,000 at 20x FY24E EPS.”
Shah concluded by saying, “FII investments have started in the last few weeks and are likely to continue. Equity will continue its outperformance with double digit returns. Sectors like automobile, capital goods, consumer in FY23 Will be in focus.”
Shrikant Chauhan, Head of Equity Research (Retail) at Kotak Securities, said, “With the Q1FY23 results season coming to a close, market focus will shift to macro factors, including inflation, central bank rate action, oil prices and major economies globally. including recession concerns.
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