Indian equities end higher for second consecutive week
The Indian equity markets ended higher for the second consecutive week, with the S&P BSE Sensex and the Nifty 50 indices rising by 1.85% and 1.97%, respectively, on Friday. The gains were supported by positive domestic macroeconomic data, sustained buying by domestic investors, and expectations of a rate pause by the US Federal Reserve in its upcoming meeting.
The BSE Midcap index gained 4%, led by gains in Power Finance Corporation, IDBI Bank, Petronet LNG, Schaeffler India, REC, Adani Power, JSW Energy, Bayer CropScience, and Tube Investments of India. The BSE Smallcap index rose 2.2%, led by gains in MMTC, GTL Infrastructure, National Peroxide, Cochin Shipyard, Bombay Burmah Trading Corporation, Magadh Sugar & Energy, GMR Power, SpiceJet, Vikas WSP, Ashapura Minechem, Transformers and Rectifiers India, and Sadhana Nitrochem.
The BSE Largecap index rose 2%, led by gains in Coal India, FSN E-Commerce Ventures (Nykaa), Shree Cements, Larsen & Toubro, DLF, and HCL Technologies. In terms of market capitalization, HDFC Bank added the most in terms of market capitalization among Sensex stocks, followed by Larsen & Toubro, Reliance Industries, and Tata Consultancy Services. On the other hand, Axis Bank, Mahindra and Mahindra, and Asian Paints saw the biggest drop in market capitalization.
All sectoral indices ended in the green, with the BSE Realty index surging 5%, Capital Goods 5%, Energy 4.7%, and the BSE Power index rising 4.7%.
Foreign institutional investors (FIIs) continued their selling spree for the seventh consecutive week, offloading equities worth Rs 9,321.41 crore, while domestic institutional investors (DIIs) bought shares worth Rs 4,572.14 crore during the week.
The Indian rupee remained under pressure but showed some recovery on September 8. It ended 22 paise lower at 82.94 against the dollar on September 8, compared to its September 1 closing of 82.72.
Key takeaways
- The Indian equity markets ended higher for the second consecutive week.
- The gains were supported by positive domestic macroeconomic data, sustained buying by domestic investors, and expectations of a rate pause by the US Federal Reserve in its upcoming meeting.
- The BSE Midcap and Smallcap indices also rose significantly.
- Foreign institutional investors continued to sell Indian equities, but domestic institutional investors bought in.
- The Indian rupee remained under pressure but showed some recovery.
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