Market review: Nifty settles above 18,100 level

The benchmark indices logged decent gains over the week, despite major volatility. The Nifty index closed above 18,100 level. In the week ended on Friday, 12 November 2021, the Sensex jumped 619.07 points or 1.03% to settle at 60,686.69. The Nifty 50 index surged 186.57 points or 1.04% to settle at 18,102.75. The BSE Mid-Cap index gained 376.50 or 1.45% to settle at 26,368.78. The BSE Small-Cap index added 331.60 points or 1.15% to settle at 29,232.53.

“During the week, the global markets remained highly volatile as inflation fears elevated. The week started with disappointing numbers from China, CPI rose 1.5% YoY, while the producer price index rose by 13.5% YoY owing to imported inflation and domestic supply shortages. The US inflation hit a 30-year high level of 6.2% YoY adding fears for an earlier than expected rate hike. The domestic market also followed this trend, however, the momentum regained at the end of the week due to sectors in the market that are least impacted by inflation like IT & others, and volume growth, reforms, supportive monetary policy, good quarterly earnings and strong domestic macro data points,” said Vinod Nair, Head of Research at Geojit Financial Services.

The week that was

The benchmark indices reversed early losses and ended with strong gains on Monday, 8 November 2021. The government’s decision to cut excise duty on fuel prices, improved PMI numbers and good festive season sales numbers supported buying. The central government on Wednesday announced a cut in excise duty on petrol by Rs 5 per litre and diesel by Rs 10 per litre on the eve of Diwali. The move was followed by reductions in value-added tax (VAT) by more than a dozen states. Globally, the US Fed’s plan to start with gradual tapering fell in line with market expectations. The S&P BSE Sensex, surged 477.99 points or 0.80% at 60,545.61. The Nifty 50 index rose 151.75 points or 0.85% at 18,068.55.

The equity benchmarks settled with minor losses on Tuesday, 9 November 2021. The Nifty managed to close above the 18,000 mark after hitting an intraday low of 17,983.05 in afternoon trade. The S&P BSE Sensex fell 112.16 points or 0.19% to 60,433.45. The Nifty 50 index declined 24.30 points or 0.13% to 18,044.25.

Benchmark indices settled with minor losses on Wednesday, 10 November 2021. The Nifty managed to close above the 18,000 mark after hitting an intraday low 17,915 in early trade. The barometer index, the S&P BSE Sensex, fell 80.63 points or 0.13% to 60,352.82. The Nifty 50 index dropped 27.05 points or 0.15% to 18,017.20.

Domestic equity benchmarks ended with deep cuts on Thursday, 11 November 2021. The Nifty settled above 17,850 level after hitting the day’s low of 17,798.20 in mid-afternoon trade. Rising inflation in the US spooked investors. US inflation hit a 30-year high level of 6.2% in October from a year ago, adding fears of an earlier than expected rate hike. Relentless foreign outflows also worried investors. So far foreign institutional investors have pulled out Rs 2,877.65 crore in the cash segment of the Indian equity markets in November. The barometer index, the S&P BSE Sensex, declined 433.13 points or 0.72% at 59,919.69. The Nifty 50 index lost 143.60 points or 0.80% to close at 17,873.60.

Equity indices snapped their three-day losing streak and ended at the day’s high on Friday, 12 November 2021. The Nifty traded above the 18,050 level. The barometer index, the S&P BSE Sensex, rallied 767 points or 1.28% to 60,686.69. The Nifty 50 index added 229.15 points or 1.28% to 18,102.75.