Weekly market wrap: Sensex, Nifty extend gain for second straight week; metal, oil & gas crack
Domestic equity markets extended their gains for the second straight week as market participants took comfort from Federal Reserve minutes showing a pause to its rate hikes is on the cards later this year.
- May 27, 2022,
- Updated May 27, 2022 10:20 PM IST
Domestic equity markets extended their gains for the second straight week as market participants took comfort from Federal Reserve minutes showing a pause to its rate hikes is on the cards later this year. As a result, the benchmark equity index BSE Sensex surged 558.27 points, or 1.03 per cent, to 54,884.66 for the week ended May 27, 2022. Likewise, the 50-share Nifty gained 86.30 points, or 0.53 per cent, to 16,352.45 during the same period.
With a gain of 9.80 per cent, HDFC Life Insurance emerged as the top gainer in the Nifty index. It was followed by Kotak Mahindra Bank (up 6.40 per cent), Housing Development Finance Corporation (up 5.85 per cent), Mahindra & Mahindra (up 5.43 per cent) and HDFC Bank (up 5.38 per cent). On the other hand, Divi’s Laboratories, JSW Steel, ONGC, Tata Steel, Asian Paints and Adani Ports plunged between 8 per cent and 19 per cent.
HDFC Life Insurance hogged the limelight after it set an ambitious target of more than doubling its embedded value to Rs 60,000 crore in the next five years, buoyed by a similar feat achieved during the past five years. The HDFC group company has also set a target of doubling its AUM to Rs 4 lakh crore from the present Rs 2 lakh crore during the same time period. The company closed FY22 with an embedded value at Rs 30,000 crore, up from Rs 26,617 crore in FY21, and an AUM of Rs 2.04 lakh crore.
Sameet Chavan, chief analyst-technical and derivatives, Angel One said, “We are back to the higher end of the recent range which is 16,400 and it would be interesting to see whether Nifty surpasses it or not. It’s a matter of time and we would see Nifty traversing this level to test 16,600-16,800 in the coming week.”
However, he further added that we are still not completely out of the woods yet, because globally there is yet to stabilise things. “We advise traders not to get complacent and should keep assessing the situation regularly. As far as immediate support is concerned, 16,200 followed by 16,000 should provide a cushion on any intra-week weakness. Hopefully, global markets come out of the challenging phase soon, which will attract strong buying in our markets going ahead,” Chavan added.
Barring the BSE Bankex (up 3.95 per cent) and Auto (up 3.38 per cent) other sectoral indices on the exchange settled in the red. The BSE Metal index retreated the most by 8.28 per cent. Oil & Gas, Realty, Power, Healthcare and FMCG indices also declined by over 1 per cent during the week gone by.
The forthcoming week marks the start of a fresh month and is expected to be a data heavy week. In stock-specific activity, auto and cement companies would grab some attention, as these companies will declare their monthly sales figures in the upcoming week.
Market participants would be watching out S&P Global Manufacturing PMI, scheduled to be released on June 1. The S&P Global India Manufacturing increased to 54.7 in April 2022 from 54.0 in March. Traders will also be looking forward to S&P Global Services PMI, scheduled to be released on June 03. The S&P Global India Services PMI increased to 57.9 in April 2022 from 53.6 in March, pointing to the highest reading since last November, due to the relaxation of COVID-19 restrictions.
Traders will be reacting to important earnings in the last leg of the result season starting with Aurobindo Pharma, Campus Activewear, D B Realty, DCM Shriram Industries, Delhivery, Dish TV, IRCTC, Jindal Saw, Jindal Steel, Jubilant FoodWorks, Mazagon Dock Shipbuilders, NBCC, PC Jeweller, Radico Khaitan, Spicejet, Sun Pharma and V2 Retail, among others.
Also Read: US consumer spending beats expectations in April; inflation likely peaked
Also Read: SEBI tweaks SOP in case of defaults by trading, clearing members
Domestic equity markets extended their gains for the second straight week as market participants took comfort from Federal Reserve minutes showing a pause to its rate hikes is on the cards later this year. As a result, the benchmark equity index BSE Sensex surged 558.27 points, or 1.03 per cent, to 54,884.66 for the week ended May 27, 2022. Likewise, the 50-share Nifty gained 86.30 points, or 0.53 per cent, to 16,352.45 during the same period.
With a gain of 9.80 per cent, HDFC Life Insurance emerged as the top gainer in the Nifty index. It was followed by Kotak Mahindra Bank (up 6.40 per cent), Housing Development Finance Corporation (up 5.85 per cent), Mahindra & Mahindra (up 5.43 per cent) and HDFC Bank (up 5.38 per cent). On the other hand, Divi’s Laboratories, JSW Steel, ONGC, Tata Steel, Asian Paints and Adani Ports plunged between 8 per cent and 19 per cent.
HDFC Life Insurance hogged the limelight after it set an ambitious target of more than doubling its embedded value to Rs 60,000 crore in the next five years, buoyed by a similar feat achieved during the past five years. The HDFC group company has also set a target of doubling its AUM to Rs 4 lakh crore from the present Rs 2 lakh crore during the same time period. The company closed FY22 with an embedded value at Rs 30,000 crore, up from Rs 26,617 crore in FY21, and an AUM of Rs 2.04 lakh crore.
Sameet Chavan, chief analyst-technical and derivatives, Angel One said, “We are back to the higher end of the recent range which is 16,400 and it would be interesting to see whether Nifty surpasses it or not. It’s a matter of time and we would see Nifty traversing this level to test 16,600-16,800 in the coming week.”
However, he further added that we are still not completely out of the woods yet, because globally there is yet to stabilise things. “We advise traders not to get complacent and should keep assessing the situation regularly. As far as immediate support is concerned, 16,200 followed by 16,000 should provide a cushion on any intra-week weakness. Hopefully, global markets come out of the challenging phase soon, which will attract strong buying in our markets going ahead,” Chavan added.
Barring the BSE Bankex (up 3.95 per cent) and Auto (up 3.38 per cent) other sectoral indices on the exchange settled in the red. The BSE Metal index retreated the most by 8.28 per cent. Oil & Gas, Realty, Power, Healthcare and FMCG indices also declined by over 1 per cent during the week gone by.
The forthcoming week marks the start of a fresh month and is expected to be a data heavy week. In stock-specific activity, auto and cement companies would grab some attention, as these companies will declare their monthly sales figures in the upcoming week.
Market participants would be watching out S&P Global Manufacturing PMI, scheduled to be released on June 1. The S&P Global India Manufacturing increased to 54.7 in April 2022 from 54.0 in March. Traders will also be looking forward to S&P Global Services PMI, scheduled to be released on June 03. The S&P Global India Services PMI increased to 57.9 in April 2022 from 53.6 in March, pointing to the highest reading since last November, due to the relaxation of COVID-19 restrictions.
Traders will be reacting to important earnings in the last leg of the result season starting with Aurobindo Pharma, Campus Activewear, D B Realty, DCM Shriram Industries, Delhivery, Dish TV, IRCTC, Jindal Saw, Jindal Steel, Jubilant FoodWorks, Mazagon Dock Shipbuilders, NBCC, PC Jeweller, Radico Khaitan, Spicejet, Sun Pharma and V2 Retail, among others.
Also Read: US consumer spending beats expectations in April; inflation likely peaked
Also Read: SEBI tweaks SOP in case of defaults by trading, clearing members