Sensex, Nifty snap five-week winning streak
The domestic market remained in the consolidation phase throughout the week as the market lacked major positive domestic cues.
Domestic benchmark equity indices registered losses in the week on profit-booking, reversing a five-week gaining spree. The selloff came as global stocks declined amid the spread of the contagious delta variant of COVID-19, surging long-term bond yields and strong dollar. Global shares were also under pressure due to China Evergrande Group’s debt crisis and a widening power shortage in China. In the week ended on Friday, 1 October 2021, the Sensex dropped 1,282.89 points or 2.1% to settle at 58,765.58. The Nifty 50 index fell 321.20 points or 1.7% to settle at 17,532.05.
“The domestic market remained in the consolidation phase throughout the week as the market lacked major positive domestic cues to withstand the negative pressure from global markets. Worries over the US debt ceiling crisis along with an uptick in yield and crude oil price created concerns in the global market. Continued worries over the Chinese economy also added pressure on Asian equities. Eurozone inflation has hit its 13 years high level of 3.4% in September owing to high energy costs,” said Vinod Nair, Head of Research at Geojit Financial Services.
India’s core sector output accelerated by 11.6% in August compared to 9.9% growth in July while the Manufacturing PMI rose to 53.7 in September from 52.3 in August owing to improving demand conditions. Auto sales numbers from major manufacturers showed a decline in September sales mainly due to semiconductor supply shortage, however, expectations are high on festival season. On the domestic sectoral front, IT and banking witnessed consolidation ahead of the Q2 result while PSEs, Metals and Pharma gained momentum, Nair added.
Markets this week
Benchmark indices ended almost flat after a volatile session on Monday. The barometer index, the S&P BSE Sensex, rose 29.41 points or 0.05% to 60,077.88. The Nifty 50 index rose 1.90 points or 0.01% to 17,855.10.
The key equity indices ended with steep losses on Tuesday, snapping their three-day rising streak. The barometer index, the S&P BSE Sensex, declined 410.28 points or 0.68% to close at 59,667.60. The Nifty 50 index fell 106.50 points or 0.60% to close at 17748.60.
Key indices ended with modest losses on Wednesday, tracking mixed Asian cues. The barometer index, the S&P BSE Sensex, fell 254.33 points or 0.43% to 59,413.27. The Nifty 50 index fell 37.30 points or 0.21% to 17,711.30.
The equity benchmarks declined for the third session on Thursday amid a lack of fresh triggers and mixed global cues. A spike in U.S. benchmark bond yields and a strong dollar capped gains in equities. The barometer index, the S&P BSE Sensex, fell 286.91 points or 0.48% at 59,126.36. The Nifty 50 index fell 93.15 points or 0.53% at 17,618.15.
Benchmark indices ended with steep losses on Friday, declining for the fourth session in a row. Global stocks declined amid the spread of the contagious delta variant of COVID-19, surging long-term bond yields and strong dollar. The S&P BSE Sensex, declined 360.78 points, or 0.61% to 58,765.58. The Nifty 50 index fell 86.10 points or 0.49% to 17,532.05.
Economy
On the macro front, the gross GST revenue collected in the month of September 2021 stood at Rs 1,17,010 crore, up by 23% year on year. Of this, CGST is Rs 20,578 crore, SGST is Rs 26,767 crore, IGST is Rs 60,911 crore (including Rs 29,555 crore collected on import of goods) and Cess is Rs 8,754 crore (including Rs 623 crore collected on import of goods).
The government settled Rs 28,812 crore to CGST and Rs 24,140 crore to SGST from IGST as regular settlement. The total revenue of the Centre and the states after regular settlements in the month of September 2021 is Rs 49,390 crore for CGST and Rs 50,907 crore for the SGST.
Meanwhile, the government’s fiscal deficit stood at Rs 4.68 lakh crore or 31.1% of the budget estimates at the end of August, as per data released by the Controller General of Accounts (CGA) on Thursday. Net tax receipts were Rs 6.45 lakh crore while total expenditure was Rs 12.77 lakh crore, the data showed.
Further, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose to 53.7 in September, from 52.3 in August, highlighting a stronger expansion in overall business conditions across the sector.