Here’s how Sensex fared in a historic week

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Indian shares registered their fifth straight weekly gain, with both major indexes rising over 1.5%. The Sensex and Nifty, both, scaled record highs. The Nifty managed to close above the 17,800 level while the Sensex ended above the 60,000 mark. Positive global cues and receding pandemic fears boosted sentiment.

“Though the domestic market demonstrated a flattish trend in the beginning of the week due to global sentiments aided by concerns of central bank meetings and worries in the Chinese market, indices soared to close at record highs. Global markets tempered optimism despite a slightly hawkish tilt by the Fed Reserve intimating that the US Central Bank will begin reducing its asset purchases in November and conclude the tapering process around mid-2022. Realty stocks outperformed other sectors owing to an increase in property registrations, and cut in stamp duty (Karnataka) and home loan rates. However, profit-booking was noticeable in mid & small-cap stocks, which were under pressure and can continue in the short-term,” said Vinod Nair, Head of Research at Geojit Financial Services.

In the week ended on Friday, 24 September 2021, the Sensex jumped 1,032.58 points or 1.75% to settle at 60,048.47. The Nifty 50 index surged 268.05 points or 1.52% to settle at 17,853.20. Both the indices attained record closing levels. The BSE Mid-Cap index rose 148.36 or 0.59% to settle at 25,194.84. The BSE Small-Cap index gained 16.55 points or 0.06% to settle at 28,023.34.

Markets this week

The domestic equity benchmarks ended near the day’s low amid heavy sell off on Monday, 20 September 2021. Weak global cues spoiled sentiment. The barometer index, the S&P BSE Sensex, declined 524.96 points or 0.89% to 58,490.93. The Nifty 50 index lost 188.25 points or 1.07% to 17,396.90.

The key equity indices reversed early losses and ended with sharp gains on Tuesday, 21 September 2021. Recovering global cues boosted sentiment. The barometer index, the S&P BSE Sensex, advanced 514.34 points or 0.88% to 59,005.27. The Nifty 50 index added 165.10 points or 0.95% to 17,562.

Stocks ended with small losses after a volatile session on Wednesday, 22 September 2021. The barometer index, the S&P BSE Sensex, slipped 77.94 points or 0.13% to 58,927.33. The Nifty 50 index lost 15.35 points or 0.09% to 17,546.65.

The domestic equity barometers ended near the day’s high after a robust session on Thursday, 23 September 2021. Strong global cues boosted sentiment. The barometer index, the S&P BSE Sensex, surged 958.03 points or 1.63% to 59,885.36. The Nifty 50 index advanced 276.30 points or 1.57% to 17,822.95.

Indices ended with modest gains on Friday, 24 September 2021. The barometer index, the S&P BSE Sensex, added 163.11 points or 0.27% to 60,048.47. The Nifty 50 index gained 30.25 points or 0.17% to 17,853.20. The Sensex hit a record high of 60,333 while the Nifty hit an all-time high of 17,947.65 in intraday trade.

Economy

The Reserve Bank of India conducted open market purchase of Government Securities under the G-Sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on Wednesday, 22 September 2021. Simultaneously, the bank sold government securities under Open Market Operations (OMO) for an aggregate amount of Rs 15,000 crore on the same day.

The Asian Development Bank revised down India’s economic growth forecast for the current fiscal to 10%, from 11% predicted earlier, citing the adverse impact of the second wave of the pandemic. “The outbreak, however, dissipated faster than anticipated, resulting in several states easing lockdown measures and returning to more normal travel patterns. The economy is expected to rebound strongly in the remaining three quarters of FY2021, and grow by 10% in the full fiscal year before moderating to 7.5% in FY2022,” said the Asian Development Outlook Update (ADOU) 2021.

India has attracted Foreign Direct Investment (FDI) inflow of $27.37 billion during first four months of this financial year which is 62% higher as compared to corresponding period last financial year. Commerce and Industry Ministry said the measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The Ministry said FDI equity inflow also grew by 112% in the first four months of this financial year compared to same period last year.

The Reserve Bank of India (RBI) Governor Shaktikanta Das said that there are signs that the world is emerging from the shadow of coronavirus. While delivering the keynote address at the 48th National Management Convention of the All India Management Association, Das said the time is right to plan for an economy that is stronger, more inclusive and sustainable.

Stating that the pandemic has provided a new impetus to technology-driven companies such as fintech, edtech and health tech, RBI Governor Shaktikanta Das said the forces of ‘creative destruction’ are expected to boost productivity by encouraging greater competition, dynamism and innovation in several sectors of the economy.

Talking about the achievements of India’s manufacturing sector, Das said the country has turned from being an importer to an exporter of mobile phones. He said the trend is likely to spill over to other sectors also; enhancing India’s share in the Global Value Chain and increasing the competitiveness of India’s large and Micro, Small and Medium Enterprises. However, warning of uneven global recovery, the RBI Governor said multilateralism will lose credibility if it fails to ensure equitable access to vaccines across countries. He added that securing the health and immunity of the poor would mean a great leap towards inclusive growth.