Indian Stock Market Performance in the Third Week of September 2023
The Indian stock market continued its winning streak in the third week of September 2023, hitting record highs supported by positive macro data, continued buying from domestic investors, and a fall in selling by foreign institutional investors (FIIs) in anticipation of no rate hike by the US Federal Reserve in its policy meeting next week.
The BSE Sensex rose 1.86 percent, or 1,239.72 points, to close at 67,838.63, and Nifty50 gained 1.87 percent, or 372.35 points, to finish at 20,192.30.
The BSE Large-cap Index added 1.7 percent supported by Punjab National Bank, Bajaj Auto, HDFC Asset Management Company, ICICI Prudential Life Insurance Company, and Grasim Industries.
The BSE Small-cap index shed 1 percent dragged by BF Utilities, Agarwal Industrial Corporation, Sadhana Nitrochem, Federal-Mogul Goetze, Heritage Foods, Himadri Speciality Chemical, Sarda Energy and Minerals, Pokarna, Surya Roshni, Alok Industries, Stylam Industries, Bharat Dynamics, Elecon Engineering Company, Mrs. Bectors Food Specialities, and Zee Media Corporation. However, ITI, GTL Infrastructure, Rane Madras, Andrew Yule and Company, Sintex Plastics Technology, Central Bank of India, Marathon Nextgen Realty, Transformers and Rectifiers India, V2 Retail, and PDS rose 16-58 percent.
The BSE Mid-cap Index fell 0.5 percent. Bharat Heavy Electricals, Supreme Industries, REC, Power Finance Corporation, Schaeffler India, 3M India, and Castrol India down 7-12 percent. However, Indian Overseas Bank, SJVN, Bank of India, Vodafone Idea, and Glenmark Pharma up 10-20 percent.
Among sectors, Nifty PSU Bank index up 7.2 percent, Nifty Information Technology index rose nearly 3 percent, Nifty Bank index up 2.3 percent, Nifty Pharma and Auto indices up 2 percent each. On the other hand, Nifty Media index fell 3.6 percent and Nifty Oil & Gas index down 1 percent.
In terms of market value, Tata Consultancy Services added the most in terms of market value, followed by Bharti Airtel, HDFC Bank, and Infosys. On the other hand, Hindustan Unilever, NTPC, and Asian Paints lost the most of their market-cap.
The selling from Foreign institutional investors (FIIs) continued in the eighth consecutive week as they offloaded equities worth Rs 746.62 crore, while domestic institutional investors (DIIs) bought equities worth Rs 3,363.36 crore in this week.
The Indian rupee extended its losses as it closed above the 83 mark. For the week, the domestic units closed 24 paise lower at 83.18 on September 15 against its September 8 closing of 82.94.
The Indian stock market’s strong performance in the third week of September 2023 is a positive sign for the economy. The rally was supported by a number of factors, including positive macro data, continued buying from domestic investors, and a fall in selling by FIIs.
The macro data released in the week was largely positive, with the GDP growth rate coming in at 7.1 percent for the first quarter of FY23-24. This was above the expectations of economists and suggests that the economy is on a strong recovery path.
Domestic investors continued to buy equities in the week, with DIIs investing Rs 3,363.36 crore in the market. This is a positive sign for the market, as it suggests that domestic investors are confident about the long-term prospects of the Indian economy.
FIIs continued to sell equities in the week, but the selling was lower than in previous weeks. This suggests that FIIs are becoming more cautious about the Indian market, but they are not yet exiting in large numbers.
Analysts are optimistic about the Indian stock market in the near term, citing positive macro data, strong corporate earnings, and continued buying from domestic investors. However, global factors such as the US Federal Reserve’s interest rate policy and the ongoing war in Ukraine could pose some challenges.
Investors should continue to monitor these global factors and invest accordingly. They should also focus on investing in companies with strong fundamentals and a long-term growth outlook.
- 22 Sep
Technical Analysis Report for Nifty and Three Buy Calls
The Nifty index has been on a strong uptrend in the past three weeks, but it has recently retraced some of those gains. It is now expected to oscillate within the 19,605 to 19,878 range over the next few sessions. Three stocks that look good for buying over the next 2-3 weeks are Havells India, KSB, and Gujarat Ambuja Exports. All three stocks have strong bullish momentum and are trading above their key moving averages.
- 22 Sep
Maruti Suzuki Stock Gains on Bullish Stance from Global Brokerages
Maruti Suzuki stock gains on bullish stance from global brokerages Shares of Maruti Suzuki India surged on Friday after global brokerages Citi and Morgan Stanley maintained bullish stance on the counter. Both brokerages cited the company's improving product mix and attractive valuation as key reasons for their optimism. In addition, Maruti Suzuki reported strong sales performance in August 2023, with total domestic sales jumping 14 percent year-on-year and sale of utility vehicles jumping 118 percent year-on-year. Overall, the bullish stance from global brokerages and the company's strong sales performance are providing a boost to Maruti Suzuki stock.
- 22 Sep
PNB Gilts Hits Upper Circuit on Inclusion of Indian Bonds in JPMorgan Index
Shares of PNB Gilts hit upper circuit on September 22, 2023, following news that India's inclusion in JPMorgan's bond index is seen driving billions of dollars of inflows. The index provider will add Indian bonds to its widely-tracked emerging market index starting June 28, 2024. PNB Gilts is a primary dealer in government securities and other fixed-income instruments. The inclusion of Indian bonds in JPMorgan's index is expected to attract significant foreign inflows, which is likely to benefit PNB Gilts and other primary dealers in government securities.
- 22 Sep
Indian Bond Markets to Remain Stable in Near Term After JPMorgan Inclusion
Indian bond markets are expected to remain stable in the near term after JPMorgan's inclusion of India in its widely tracked emerging market debt index, according to BlackRock's head of Asia Pacific fixed income, Neeraj Seth. Seth expects inflows of around $20 billion to $25 billion into India after the maximum weight threshold is achieved on the GBI-EM index. Given the size of the global government bond market, this is relatively small and is unlikely to have a significant impact on volatility.
- 22 Sep
Indian market drops on September 22 despite inclusion of Indian bonds in JP Morgan index
Indian benchmark indices Sensex and Nifty fell for the fourth consecutive day on September 22, despite the inclusion of Indian bonds in the JP Morgan Government Bond Index-Emerging Markets (GBI-EM) global index suite from June 2024. The market is expected to remain volatile in the near term, with key support at 19,600 for Nifty.