On September 11, despite prevailing gloomy global indicators, the Nifty 50 scaled an unprecedented record, breaching the 20,000 mark for the first time. Concurrently, the 30-stock Sensex also observed a noteworthy appreciation, escalating by over 2% in the past week.
Despite global challenges like rising Brent crude prices, a strong dollar index, increased US 10-year bond yields, and continuous sales by foreign institutional investors, the gains were notable.
Foreign institutions divested Indian equities amounting to Rs 9,321.41 crore over the week, counterbalanced by domestic institutional investors who amplified their holdings with purchases equating to Rs 4,572.14 crore.
The broader market reflected a similar positive trend. Both the Nifty Smallcap 100 and Nifty Midcap 100 indices not only surpassed the benchmark indices but also achieved new all-time highs during the week, with their gains persisting into the current trading session.
The recent market performance appears to be influenced by domestic macroeconomic data from August and ongoing investment patterns by domestic institutional entities. The outcomes of the G20 summit seem to have contributed to the market’s current energy.
Increased bilateral trades suggest possible opportunities for industries, particularly in areas like pipes and cables. Moreover, sectors such as Railways, Shipping, and Logistics appear well-positioned to possibly benefit from recent policy developments.
For those interested in future economic patterns, it might be worth noting the upcoming release of India’s retail inflation data for August and industrial production numbers for July, expected to be presented on Tuesday.
