Sensex, Nifty logged one of the best weeks of 2021; here’s how they fared

Domestic benchmark indices logged strong gains this week, helped by positive global cues. The Sensex and Nifty ended at record high levels on Friday. Sensex touched a new high to close above 58,000-mark while Nifty sustained above the psychological 17,000 level. In the week ended on Friday, 3 September 2021, the Sensex surged 2,005 points or 3.57% to settle at 58,129. Likewise, The Nifty 50 index soared 618 points or 3.70% to settle at 17,323 making the best weekly gain for Nifty since early February.

“Indian markets ended the week on a record high as momentum continued in blue-chip large caps. Sensex crossed the 58,000-level for the first time while Nifty made a new high of 17,340, led by gains in index heavyweights like Reliance Industries, ONCG, Coal India, Titan amidst positive trend in global markets and sustained foreign fund inflows,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Strong Service PMI data and healthy GST collection numbers boosted market sentiments. India’s Service PMI stood at 56.7 in August, up from 45.4 in July indicating the fastest growth in over 18 months while the GST collection remained above Rs 1 lakh mark for the second consecutive month at Rs 1.12 lakh crore for August. Globally cues were positive with US markets closing at record levels while European stocks remained range-bound near all-time highs, Khemka added.

Markets this week

The key equity indices rallied on Monday, 30 August 2021 supported by firm global cues. The sentiment improved after US Federal Reserve chair Jerome Powell signalled that the US central bank would remain patient in winding down its stimulus. The Nifty closed above the 16,900 mark for the first time. The barometer index, the S&P BSE Sensex, surged 765 points or 1.36% at 56,889. The Nifty 50 index added 225 points or 1.35% at 16,931.

Domestic equity benchmarks gained on Tuesday, 31 August 2021. Positive Asian cues also boosted sentiment. The Sensex climbed 57,500 mark for the first time ever while the Nifty scaled 17,100 level. The barometer index, the S&P BSE Sensex, soared 662 points or 1.16% at 57,552. The Nifty 50 index surged 201 points or 1.19% at 17,132.

Key benchmark indices ended with modest losses on Wednesday, 1 September 2021 amid profit selling after recent steep gains. The Nifty managed to hold the 17,000 mark. The barometer index, the S&P BSE Sensex, fell 214 points or 0.37% at 57,338. The Nifty 50 index lost 55 points or 0.33% at 17,076.

Indices clocked robust gains on Thursday, 2 September 2021. Investors’ risk appetite improved as India continues to administer a record number of daily COVID-19 vaccine doses. The barometer index, the S&P BSE Sensex, surged 514 points or 0.9% at 57,852. The Nifty 50 index advanced 157 points or 0.92% at 17,234.

Barometers ended at a record high level with decent gains on Friday, 3 September 2021. The Nifty closed above the crucial 17,300 mark. The barometer index, the S&P BSE Sensex, gained 277.41 points or 0.48% at 58,129. The Nifty 50 index added 89 points or 0.52% to 17,323. The Sensex hit a record high of 58,194 while the Nifty scaled all-time high of 17,340 in intraday trade.

Economy

India’s gross domestic product (GDP) surged 20.1% in the April-June quarter of the current fiscal. The GDP logged a high growth amid the opening of the economy after the lockdown to arrest COVID-19 and low base effect as the economy witnessed a contraction of 24.4% in the first quarter of 2020-21 fiscal.

India’s fiscal deficit for April-July period stood at Rs 3.21 lakh crore ($43.98 billion), which is 21.3% of the full fiscal’s target. The deficit figures this fiscal appear much better than the previous financial year, when it soared to 103.1% of the estimate, mainly on account of a jump in expenditure to deal with the COVID-19 pandemic.

Meanwhile, the production of eight core industries rose by 9.4% in July 2021 against a 7.6% decline in the year-ago month. According to official data released on Tuesday showed that all sectors except crude oil registered an increase in output. The output of core sectors had registered a 7.6% decline in July 2020 due to COVID-19 related restrictions. On a month-on-month basis, output rose 5.4% in July after growing 1.5% in June.

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) stood at 52.3 in August 2021, pointing to an improvement in overall operating conditions for the second straight month. The headline figure fell from 55.3 in July 2021, indicating a softer rate of growth that was subdued in the context of historical survey data.

The gross GST revenue collected in the month of August 2021 stood at Rs 1,12,020 crore of which CGST stood at Rs 20,522 crore, SGST at Rs 26,605 crore, IGST at Rs 56,247 crore (including Rs 26,884 crore collected on import of goods) while Cess came at Rs 8,646 crore. The revenues for the month of August 2021 are 30% higher than the GST revenues in the same month last year. Even as compared to the August revenues in 2019-20 of Rs 98,202 crore, this is a growth of 14%.

India’s exports jumped 45.17% to $33.14 billion in August as against $22.83 billion in the same month last year, according to the commerce ministry’s provisional data. Imports in August rose 51.47% to $47.01 billion, as against $31.03 billion in the corresponding month of 2020. The trade deficit in August 2021 was $13.87 billion, compared to $8.2 billion in the year-ago period.

The seasonally adjusted India Services Business Activity Index stood at 56.7 in August, up from 45.4 in July. The index was above the 50.0 neutral threshold for the first time in four months. The latest reading pointed to a marked rate of expansion that was the fastest in one-and-a-half years. Where growth was reported, panelists mentioned strong inflows of new work and improved demand conditions.