After a week of halts boosted by an advance in global risk assets, Indian equity benchmarks regained some of the lost ground after Federal Reserve meeting minutes showed support for smaller rate hikes from now on. The Organisation for Economic Cooperation and Development (OECD) states in its latest report that India is poised to be the second-fastest growth rate in the G 20 in FY 2022 -- 23 behind Saudi Arabia despite decelerating global demand and tightening of monetary policy to manage inflationary pressures.
Revenue Secretary Tarun Bajaj has said India's tax collection will surpass the budget estimate by nearly 4 lakh crore in the current fiscal on the back of the buoyant income tax, customs duty and GST mop-up. These positive signals helped the BSE Sensex to gain 630.16 points, or 1.0 per cent, at 62,293. During the week ending November 25, 64 were inclined 205.10 points, or 1.1 per cent, to 18,512, while the Nifty fell by 205.10 points, or 1.1 per cent. A steady softening of global bond yields on expectations of peak inflation and a decline in crude prices helped equity markets keep momentum and helped the Nifty 50 Index log its new all-time high on a closing basis, said Shrikant Chouhan, Head of Equity Research Retail at Kotak Securities. FPIs net sellers were net sellers in the past five trading sessions, while DIIs were net buyers in the same period. Markets going ahead may be dominated by global news flows and measures taken by different governments to tackle their economy. The US Federal Reserve officials are expecting to switch to smaller interest rate increases soon, according to minutes from the November meeting released Wednesday. Some officials expressed concern about the impact rate increases could have on financial stability and the economy. Mainland China reported more than 31,000 Covid infections on Wednesday, including cases without symptoms. It's more than the country reported during the Shanghai lockdown in April. Since 1982, Tokyo saw the highest core consumer price index reading, according to Chouhan.
As many as 41 stocks in the Nifty 50 index delivered a positive return to investors in the past week. HDFC Life Insurance company emerged as the top gainer in the index with a gain of 10.3 per cent. Apollo Hospitals Enterprise went up 8.7 per cent Bharat Petroleum Corporation by 5.3 per cent, and Axis Bank by 3.3 per cent Mahindra Mahindra, NTPC, JSW Steel and Sun Pharmaceutical Industries also increased by over 2.5 per cent. Nestle India, Kotak Mahindra Bank and Bajaj Finserv declined 2.1 per cent, 1.6 per cent and 1.3 per cent, respectively.
The BSE Information Technology Index and the BSE Teck index both gained 1.9 per cent during the week gone by. BSE Oil Gas has given a 1.8 per cent return. BSE Auto, BSE Capital Goods, BSE Metal, BSE Carbonex, BSE Healthcare and BSE Bankex also surged more than 1 per cent. The indices of BSE Power and BSE Realty declined by 2.1 per cent and 0.9 per cent during the week.
Market strategist Deepak Jasani, head of retail research at HDFC Securities, said that the Nifty gained 1.12% over the week, rising in 5 out of the past 6 weeks. Even as they gained for the week, global markets traded largely unchanged on Friday. Nifty could challenge the high of 18604 in the near term, while 18325 -- 18403 band could provide support in the near term.