Weekly Market Recap: Strong Domestic Macro Indicators Help Stock Markets Extend Winning Streak for 3rd Week in a Row

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Extending their winning streak for the third week in a row, Indian equity benchmarks ended the past week with a gain of around two percentage points, driven by strength in Asian markets as investors watch indices on the US business health and employment data for signals on future rate hikes. . Domestically, GST collections increased by 16.6% to Rs 1.52 lakh crore in October. The October 2022 revenue is the second highest monthly collection, just after the April 2022 collection. Also, for the second time, the gross collection of GST crossed the Rs 1.50 lakh crore mark.

Market participants have been buoyed by a report that India is expected to exceed its tax collection target by more than Rs 2 lakh crore ($24.3 billion) in the current financial year. Also after output from eight infrastructure industries that make up the core sector, growth picked up to 7.9% in September. India’s industrial activity grew at a stronger pace in October. The manufacturing PMI rose to 55.3 in October from 55.1 in September, remaining above the 50 level for the sixteenth month.
Meanwhile, the S&P Global India Services PMI business activity index jumped to 55.1 in October from 54.3 in September. These positive signals helped the BSE Sensex rise 990.51 points, or 1.7%, to 60,950.36 in the week ended November 4, while the Nifty tipped 330.35 points, or 1, 9% to 18,117.15.
Market veteran Deepak Jasani, head of retail research at HDFC Securities, said: “Global equities pared a weekly loss as Chinese stocks surged amid signs that authorities are trying harder. mitigate the impact of its Covid-Zero policy. Emerging market stocks jumped 2% on Friday and were on track for their best weekly performance in more than a year, thanks to a surge in Chinese stocks this week on optimism around the lifting of COVID restrictions.
“Concerns over China’s growth under its zero COVID policy and the tightening of global monetary policy to avoid inflation exacerbated by the Russian-Ukrainian war have rattled markets this year, leaving little room for a Sustained appetite for risk India’s unemployment rate rose to 7.77% in October from a four-year low of 6.43% in September, according to data from the Center for Monitoring Indian Economy (CMIE).
“Nifty was up 1.86% for the week, rising for the third straight week. Although Nifty shows volatile movements during the day, the underlying trend continues to be bullish. 17899 could be support for the Nifty while 18179 and later 18287 could be near-term resistance. Jasani added.
No less than 39 stocks in the Nifty 50 index have generated positive returns for investors over the past week. With a gain of (9%), Bajaj Finserv emerged as the index’s top gainer. It was followed by Ultratech Cement (up 7%), Hindalco Industries (up 6.3%), Divi’s Laboratories (up 5.6%) and Shree Cement (up 5.4%) .
Sun Pharmaceutical Industries, Adani Ports and Special Economic Zone, Grasim Industries, JSW Steel, Asian Paints and State Bank Of India also rose more than 4%. In contrast, Apollo Hospitals Enterprise, Axis Bank and Maruti Suzuki India were down 4.6%, 4.0% and 2.8% respectively.
On a sector basis, the BSE Metal Index gained 4.7% over the past week. The BSE Healthcare Index also returned 2.6%. While the BSE Oil & Gas and BSE Capital Goods indices also jumped more than 2%. In addition, all sector indexes posted positive numbers for the week.
Market Watcher Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities, said: “The Indian indices throughout the week witnessed a volatile trading session where bulls and bears were active in full swing. whip. The indices are experiencing a flat close from a weekly perspective with sector and stock-specific moves. Significant buying action was seen in sectors such as infrastructure, metals and railroad equipment, PSU banking. The Nifty Metal Index was the best performing sector with gains of 7.5%, followed by the PSU BANK Index which rose 2.9%.

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