A disappointing start to the earnings season due to the IT sector's lowered revenue outlook, combined with an increase in crude oil prices, influenced the overall market direction. As many as 36 firms in the Nifty 50 index returned a profit to investors. Tata Motors emerged as the index's top gainer with a weekly gain of 7.2%.
Among sectors, the BSE Realty index gained the most (4.1%) during the previous week. While the BSE Auto and BSE Metal indices have gained 2.9 and 2.4 percent, respectively. Indian market indexes ended the week with a 0.5 percent rise as the IMF raised India's GDP prediction, but geopolitical tensions between Israel and Palestine limited gains.
Markets opened lower as traders remained anxious about increasing geopolitical tensions in the Middle East and surging crude oil prices elsewhere.
The market, however, became more hopeful after the International Monetary Fund (IMF) boosted its GDP growth prediction for India for the second time in three months, bringing it closer to the 6.5 percent expected by Indian officials. In addition, data from the National Sample Survey Office (NSSO) showed that the unemployment rate for people aged 15 and above in urban areas fell to 6.6% in April-June 2023, down from 7.6% the previous year.
The BSE Sensex rose 287 points, or 0.44 percent, to 66,283 during the week ending October 13, while the Nifty gained 98 points, or 0.5%, to 19,751. Among sectors, the BSE Realty index gained the most (4.1%) during the previous week. While the BSE Auto and BSE Metal indices have gained 2.9 and 2.4 percent, respectively. The BSE Information Technology index, on the other hand, has dropped 1.3% in a week.
During the week, 36 firms in the Nifty 50 index produced positive returns to investors. Tata Motors emerged as the index's top gainer with a weekly gain of 7.2%. Coal India (7%) came in second, followed by Tata Consumer Products (4.4%), Grasim Industries (4.3%), and Maruti Suzuki India (4.1%). Shree Cement and Bharti Airtel both increased by more than 3%. Infosys, State Bank of India, and Adani Ports and Special Economic Zone, on the other hand, fell 3.2%, 3%, and 2%, respectively.
According to Vinod Nair, Head of Research at Geojit Financial Services, the Indian market has recovered from a poor start, powered by optimistic forecasts for Q2 results and a decrease in global bond yields, despite continuing concerns about the Middle East crisis.
However, by the end of the week, the announcement of higher-than-expected US inflation figures and the associated increase in treasury yields had partially negated the bullish trend.
Local variables such as a large decline in CPI statistics and outstanding industrial output helped to retain broad optimism, he added. The IT sector's lower revenue projection, combined with an increase in crude oil prices, hampered the overall market trend." The real estate industry, on the other hand, did well, bolstered by substantial project launches and an increase in pre-sales as the holiday season approached. Looking ahead, investors will closely track the start of the second quarter results season, which has high expectations in industries such as auto, finance, and oil and gas," Nair added.
According to Rupak De, Senior Technical Analyst at LKP Securities, the bulls were able to protect the level of 19600 during the day due to a substantial build-up of open interest (OI) at the 19,600 strike price by put writers. The rally could last as long as the index remains over 19600.