Domestic equity markets extended their gains for the second straight week as market participants took comfort from Federal Reserve minutes showing that a pause to its rate hikes will be on the cards later this year. The benchmark equity index BSE Sensex went up 558.27 points, or 1.03 per cent, to 54,884. For the week ending May 27, 2022, the week ended 66. The 50-share Nifty gained 86.30 points, or 0.53 per cent, to 16,352. HDFC Life Insurance was the top gainer in the Nifty index, with a gain of 9.80 per cent. It was followed by Kotak Mahindra Bank up 6.40 per cent Housing Development Finance Corporation up 5.43 per cent Mahindra Mahindra and HDFC Bank up 5.38 per cent. In the other hand, Divi s Laboratories, JSW Steel, ONGC, Tata Steel, Asian Paints and Adani Ports fell between 8 per cent and 19 per cent.
HDFC Life Insurance got the limelight after it set an ambitious goal 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 set a goal of doubling its AUM to Rs 4 lakh crore from the current Rs 2 lakh crore during the same time period. The company closed on FY 22 with an embedded value of Rs 30,000 crore, up from Rs 26,617 crore in FY 21, and an AUM of Rs 2.04 lakh crore.
Angel One said that 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. He added that we are still not completely out of the woods yet, because there is still time to stabilise things. We advise traders not to be complacent and to keep checking the situation regularly. As far as immediate support is concerned, 16,200 followed by 16,000 should provide a cushion against any intra-week weakness. Chavan said that global markets will be able to come out of the challenging phase soon, which will attract strong buying in our markets going ahead.
Barring the BSE Bankex by 3.95 per cent and the Auto by 3.38 per cent, the other sectoral indexes on the exchange settled in the red. The BSE Metal index fell by 8.28 per cent. Oil Gas, Realty, Power, Healthcare and FMCG indices declined by more than 1 per cent during the week gone by.
The data heavy week is expected to be a data heavy week, and the coming week will be the beginning of a new month. Auto and cement companies are going to get some attention in the upcoming week, as they will declare their monthly sales figures in the upcoming week.
Market participants would be watching S&P Global Manufacturing PMI, scheduled to be released on June 1. S&P Global India Manufacturing increased to 54.7 in April 2022 from 54.0 in March. Traders will be looking forward to S&P Global Services PMI, scheduled to be released on June 03. The PMI of S&P Global India Services increased from 53.6 in March to 57.9 in April 2022, pointing to the highest reading since November last November due to the relaxation of COVID 19 restrictions.
Traders will be reacting to the earnings in the last leg of the result season starting with Aurobindo Pharma, Campus Activewear, D B Realty, DCM Shriram Industries, Delhivery, IRCTC, Jindal Saw, Jindal Steel, Jubilant FoodWorks, Mazagon Dock Shipbuilders, NBCC, PC Jeweller, Radico Khaitan, Spicejet, Sun Pharma, and V 2 Retail, among others.