The Indian stock market witnessed a volatile week from 7 Aug 2023 to 11 Aug 2023, as the Nifty 50 index fluctuated between gains and losses amid mixed global cues and domestic factors. Here is a date wise summary of the market performance for this period:
- 7 Aug 2023, Monday: The Nifty 50 index closed at 19,597.30, up by 0.41% from the previous trading day. The index opened at 19,576.85, and touched a high of 19,620.45 and a low of 19,524.80 during the day. The volatility index (VIX) was at 12.32, down by 1.44% from the previous day. The market trend was bullish, as the index recovered from the losses of the previous week and closed above the psychological level of 19,500. Some of the factors that drove the market on this day were:
- The positive sentiment in the global markets, as the US and China resumed trade talks and eased tensions over North Korea’s missile tests.
- The strong earnings reports from some of the leading companies in the Nifty 50 index, such as HDFC Bank, Reliance Industries, and Tata Consultancy Services.
- The expectation of a rate cut by the Reserve Bank of India (RBI) in its monetary policy review on 9 Aug 2023, as inflation remained below the central bank’s target range.
- The announcement of a mega merger plan between Idea Cellular and Vodafone India, which would create the largest telecom operator in India.
- The increase in foreign institutional investors (FIIs) inflows into the Indian equity market, as they bought shares worth Rs. 1,614 crore on this day.
- 8 Aug 2023, Tuesday: The Nifty 50 index closed at 19,570.85, down by 0.13% from the previous trading day. The index opened at 19,627.20, and touched a high of 19,634.40 and a low of 19,533.10 during the day. The volatility index (VIX) was at 12.28, down by 0.33% from the previous day. The market trend was sideways, as the index traded in a narrow range and failed to sustain above the level of 19,600. Some of the factors that influenced the market on this day were:
- The mixed cues from the global markets, as the US and China continued their trade talks but also exchanged threats over tariffs and currency manipulation.
- The weak industrial production data for June 2023, which showed a growth of only 1.7%, lower than the expected 2.4%.
- The profit booking by some of the investors after the recent rally in the market.
- The anticipation of the RBI’s monetary policy decision on the next day.
- The positive news from some of the sectors such as IT, pharma, and FMCG, which supported the market sentiment.
- 9 Aug 2023, Wednesday: The Nifty 50 index closed at 19,632.55, up by 0.32% from the previous trading day. The index opened at 19,578.80, and touched a high of 19,645.50 and a low of 19,467.50 during the day. The volatility index (VIX) was at 12.15, down by 1.06% from the previous day. The market trend was bullish, as the index rose to a new record high and closed above the level of 19,600 for the first time. Some of the factors that boosted the market on this day were:
- The rate cut by the RBI in its monetary policy review, as it reduced the repo rate by 25 basis points to 5.75%, the lowest since 2010. The RBI also changed its stance from neutral to accommodative, signaling more rate cuts in the future.
- The strong performance of some of the sectors such as banking, auto, and metal, which gained from the rate cut and the positive global cues.
- The optimism about the upcoming quarterly results of some of the key companies in the Nifty 50 index, such as Infosys, Hindustan Unilever, and Larsen & Toubro.
- The easing of tensions between India and China over the border dispute in Doklam, as both sides agreed to withdraw their troops and restore peace.
- The continued inflows of FIIs into the Indian equity market, as they bought shares worth Rs. 1,234 crore on this day.
- 10 Aug 2023, Thursday: The Nifty 50 index closed at 19,543.10, down by 0.46% from the previous trading day. The index opened at 19,605.55, and touched a high of 19,623.60 and a low of 19,495.40 during the day. The volatility index (VIX) was at 12.42, up by 2.22% from the previous day. The market trend was bearish, as the index snapped its four-day winning streak and corrected from its record high level. Some of the factors that dragged the market on this day were:
- The profit booking by some of the investors after the recent rally in the market.
- The mixed cues from the global markets, as the US and North Korea exchanged heated rhetoric over their nuclear programs.
- The disappointing quarterly results of some of the companies in the Nifty 50 index, such as Infosys, Hindustan Unilever, and Larsen & Toubro. Infosys reported a lower-than-expected net profit and cut its revenue guidance for FY 2023-24. Hindustan Unilever posted a lower-than-expected volume growth and margin expansion. Larsen & Toubro reported a decline in its net profit and order inflows.
- The weakness in some of the sectors such as IT, FMCG, and capital goods, which were affected by the poor earnings reports.
- The outflows of FIIs from the Indian equity market, as they sold shares worth Rs. 1,056 crore on this day.
- 11 Aug 2023, Friday: The Nifty 50 index closed at 19,428.30, down by 0.59% from the previous trading day. The index opened at 19,554.25, and touched a high of 19,557.75 and a low of 19,412.75 during the day. The volatility index (VIX) was at 12.68, up by 2.09% from the previous day. The market trend was bearish, as the index extended its losses for the second consecutive day and closed below the level of 19,500. Some of the factors that weighed on the market on this day were:
- The escalation of tensions between India and China over the border dispute in Doklam, as China accused India of violating its sovereignty and warned of serious consequences.
- The negative sentiment in the global markets, as the US and North Korea continued their war of words over their nuclear programs.
- The uncertainty over the implementation of Goods and Services Tax (GST) in India, as some of the sectors such as textile, jewellery, and transport faced protests and disruptions due to GST-related issues.
- The weakness in some of the sectors such as pharma, telecom, and realty, which faced regulatory hurdles and competitive pressures.
- The outflows of FIIs from the Indian equity market, as they sold shares worth Rs. 1,124 crore on this day.
Disclaimer: The above article is based on the information available from sources and does not constitute any investment advice or recommendation. The predictions and factors mentioned in the article are subject to change depending on the market conditions and other developments. The readers are advised to do their own research and analysis before making any investment decisions based on the article. The author and the publisher are not responsible for any losses or damages arising from the use of the article.