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Weekly wrap: Sensex reclaims Mt 56K; BSE m-cap climbs Rs 9 lakh crore

Weekly wrap: Sensex reclaims Mt 56K; BSE m-cap climbs Rs 9 lakh crore

Sectorwise, the BSE IT index gained 5.92% during the past five trading sessions. BSE Bankex, BSE Metal, BSE Capital Goods and BSE Realty also outpaced Sensex with a gain of over 4.60%.

In the forthcoming week, investors will be eyeing the data on core sector growth which is scheduled to be released on July 29. In the forthcoming week, investors will be eyeing the data on core sector growth which is scheduled to be released on July 29.

Hopes of a strong earnings season, buying by foreign institutional investors (FIIs), stabilising crude oil prices and positive global cues aided market sentiment this week. As a result, the benchmark equity index BSE Sensex soared 4.30 per cent, or 2,311.45 points, to 56,072.23 on July 22 from 53,760.78 on July 15. Following the momentum on Dalal Street, the market capitalisation of the BSE-listed firm spiked Rs 9.14 lakh crore to Rs 261.09 lakh crore. Likewise, the 50-share NSE Nifty index advanced 4.18 per cent or 670.25 points to 16,719.45.

With a rally of 15.63 per cent, IndusInd Bank emerged as the top gainer in the Nifty index. It was followed by UltraTech Cement (up 11.22 per cent), Axis Bank (up 10.35 per cent), Grasim Industries (up 8.81 per cent), Hindalco Industries (up 8.76 per cent), UPL (up 8.31 per cent) and State Bank of India (up 7.22 per cent). On the other hand, Dr Reddy’s Laboratories, HDFC Life Insurance, NTPC and Sun Pharmaceutical declined between 0.40 per cent and 4 per cent.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One, said, “The global screen was excellent at the start of the week as sentiments improved drastically over the weekend. As a result, we had a decent bump at the opening on Monday which kept on accelerating as the week progressed.”

Shrikant Chouhan, head of equity research (retail), Kotak Securities, said, “Equity markets seem to have received support from the hope of peaking inflation amid a decline in commodity prices and a slowdown in FII selling. FIIs have been buyers for some days so far in July 2022. US 10-year bond yield is now below 3 per cent and crude oil prices continue to hover around $100 per barrel mark. In the near term, markets will be tracking the upcoming Fed Reserve meeting, currency movement and quarterly results.”

Data available with Ace Equity showed that foreign institutional investors bought shares worth Rs 8,531 crore during the past five trading sessions.

Sectorwise, the BSE IT index gained 5.92 per cent during the past five trading sessions. BSE Bankex, BSE Metal, BSE Capital Goods and BSE Realty also outpaced Sensex with a gain of over 4.60 per cent. Other sectoral indices also settled the week in the green.

In the forthcoming week, investors will be eyeing the data on core sector growth which is scheduled to be released on July 29. On the same day, foreign exchange reserves data are also scheduled to be released. The Indian foreign exchange reserves plunged to a 15-month low of $580.3 billion as of July 8, falling for the second straight week as the country’s central bank ramped up efforts to slow the fast depreciation of the rupee.

Further, in the ongoing earnings season, investors would first react to the results of Reliance Industries which came after market hours on Friday. Shares of the energy-to-telecom behemoth settled 0.62 per cent up at Rs 2,502.90 on July 22.

Market participants will also zero on the results of ICICI Bank, Kotak Mahindra Bank, YES Bank, Infosys, Axis Bank, Canara Bank, Central Bank Of India, Chennai Petroleum Corporation, IEX, Macrotech Developers, Tata Steel, Tech Mahindra, Asian Paints, Larsen & Toubro, Tata Power, Bajaj Finance, Maruti Suzuki India, Tata Motors, Bajaj Finserv, Dr Reddy’s Laboratories, Nestle India, Vedanta, TVS Motor, Cipla, HDFC, IOC, Bank of Baroda, Sun Pharma among others.

Apurva Sheth, head of market perspectives, Samco Securities said, “The forthcoming week will be action-packed with activities. The FOMC meeting and press conference will take centre stage. While the rate hike is anticipated to be aggressive, market participants will attempt to interpret between the lines to assess the economy's route. The Fed would attempt to keep inflation in check without harming the labour market. Besides that, the release of the United States’ QoQ GDP figures would have an impact on market sentiment. In Indian markets, one can expect some volatility as we approach the monthly expiry.”