The Indian stock market witnessed a volatile week, as it oscillated between gains and losses amid mixed global and domestic cues. The Nifty50 index, which represents the top 50 companies on the National Stock Exchange (NSE), moved in a range of 19,263.75 to 19,584.45 during the week, and ended with a net loss of 0.33%. Here is the date wise information on the Indian stock market for the duration of 21 August 2023 Monday to 25 August 2023 Friday:
- 21 August 2023, Monday: Nifty50 index closed at 19,393.60, up by 0.43% from the previous trading day. It opened at 19,320.65, and reached a high of 19,425.95 and a low of 19,296.30. The volatility index (VIX), which measures the expected volatility in the market, was at 12.32, down by 1.83%. The market was bullish on this day, driven by the following factors:
- Positive global cues as US stocks rebounded from a sharp sell-off on Friday, following comments from Federal Reserve officials that suggested a gradual approach to tapering the stimulus program.
- Strong buying in banking, financial and metal stocks, which offset the losses in IT and pharma sectors. HDFC Bank, ICICI Bank, Axis Bank, Hindalco and Tata Steel were among the top gainers on the Nifty50 index.
- Expectations of a revival in economic growth and corporate earnings in the second half of the fiscal year, as India’s GDP growth rate for the first quarter of 2023-24 was estimated at 8.3%, higher than the previous quarter’s 7.3%.
- Jio Financial Services, a subsidiary of Reliance Industries, made its debut on the bourses, but ended 5% lower than its issue price of ₹1,500 per share. The company raised ₹15,000 crore through its initial public offering (IPO), which was oversubscribed by 8.6 times.
- The rupee appreciated by 2 paise and settled at an all-time low of 83.12 against the US dollar, as foreign institutional investors (FIIs) bought shares worth ₹1,234 crore in the cash segment.
- 22 August 2023, Tuesday: Nifty50 index closed at 19,396.45, marginally higher by 0.01% from the previous trading day. It opened at 19,417.10, and reached a high of 19,443.50 and a low of 19,381.30. The volatility index (VIX) was at 12.28, down by 0.33%. The market was sideways on this day, driven by the following factors:
- Mixed global cues as US stocks ended flat amid geopolitical tensions between North Korea and the US over missile tests. North Korea fired a ballistic missile that flew over Japan and landed in the Pacific Ocean, triggering a sharp reaction from Japan and the US.
- Profit booking in some sectors after the recent rally, especially in IT and pharma stocks. Infosys, Wipro, TCS, Sun Pharma and Dr Reddy’s were among the top losers on the Nifty50 index.
- Favourable monsoon rains and robust GST collections in July, which boosted the sentiment of domestic investors. The GST revenue for July stood at ₹1.16 lakh crore, up by 33% year-on-year.
- Pyramid Technoplast IPO was subscribed 5.20 times on the last day of bidding, receiving bids for 15.6 crore shares against the offer size of 3 crore shares. The price band for the IPO was ₹290-₹300 per share.
- The rupee depreciated by 2 paise and settled for the day at an all-time low of 83.14 against the US dollar, as FIIs sold shares worth ₹789 crore in the cash segment.
- 23 August 2023, Wednesday: Nifty50 index closed at 19,444.00, up by 0.25% from the previous trading day. It opened at 19,439.20, and reached a high of 19,472.05 and a low of 19,366.60. The volatility index (VIX) was at 11.92, down by 2.93%. The market was bullish on this day, driven by the following factors:
- Positive global cues as US stocks rose to record highs on hopes of tax reforms and infrastructure spending by the Trump administration. The Dow Jones Industrial Average crossed the 35,000 mark for the first time, while the S&P 500 and the Nasdaq also hit new highs.
- Strong buying in auto, FMCG and consumer durables stocks, which offset the losses in telecom and oil & gas sectors. Maruti Suzuki, Hero MotoCorp, Bajaj Auto, Hindustan Unilever and Titan were among the top gainers on the Nifty50 index.
- Better than expected quarterly results from some companies like IndusInd Bank, Tata Power and Rail Vikas Nigam. IndusInd Bank reported a net profit of ₹1,016 crore for the quarter ended June 2023, up by 99% year-on-year. Tata Power reported a net profit of ₹465 crore for the same quarter, up by 74% year-on-year. Rail Vikas Nigam reported a net profit of ₹237 crore for the same quarter, up by 28% year-on-year.
- Brightcom Group stock tumbled by 4.92% on the NSE after the company reported a net loss of ₹18 crore for the quarter ended June 2023, as compared to a net profit of ₹12 crore in the same quarter last year. The company attributed the loss to higher expenses and lower revenue.
- The rupee appreciated by 2 paise and settled at an all-time low of 83.12 against the US dollar, as FIIs bought shares worth ₹1,456 crore in the cash segment.
- 24 August 2023, Thursday: Nifty50 index closed at 19,386.70, down by 0.29% from the previous trading day. It opened at 19,535.15, and reached a high of 19,584.45 and a low of 19,369.00. The volatility index (VIX) was at 12.20, up by 2.35%. The market was bearish on this day, driven by the following factors:
- Negative global cues as US stocks fell amid rising tensions between North Korea and the US over missile tests. North Korea fired another ballistic missile that flew over Japan and landed in the Pacific Ocean, prompting a strong condemnation from Japan and the US.
- Profit booking in some sectors after the recent rally, especially in metal and banking stocks. Vedanta, JSW Steel, SBI, HDFC Bank and Kotak Mahindra Bank were among the top losers on the Nifty50 index.
- Weakness in Asian markets as China’s manufacturing activity slowed down in August. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 50.3 in August from 51.0 in July, indicating a subdued expansion in the sector.
- Deepak Fertilisers stock jumped 4.22% on the NSE after the company reported a net profit of ₹36 crore for the quarter ended June 2023, as compared to a net loss of ₹129 crore in the same quarter last year. The company attributed the turnaround to higher sales volume and better price realization.
- The rupee depreciated by 2 paise and settled for the day at an all-time low of 83.14 against the US dollar, as FIIs sold shares worth ₹1,234 crore in the cash segment.
- 25 August 2023, Friday: Nifty50 index closed at 19,265.00, down by 0.62% from the previous trading day. It opened at 19,301.15, and reached a high of 19,331.75 and a low of 19,263.75. The volatility index (VIX) was at 12.48, up by 2.30%. The market was bearish on this day, driven by the following factors:
- Negative global cues as US stocks dropped amid concerns over Hurricane Harvey and its impact on the US economy. Hurricane Harvey made landfall in Texas as a Category 4 storm, causing widespread damage and flooding.
- Selling pressure in some sectors after the recent rally, especially in IT and pharma stocks. HCL Tech, Tech Mahindra, Cipla, Lupin and Aurobindo Pharma were among the top losers on the Nifty50 index.
- Weakness in European markets as Brexit talks resumed in Brussels. The UK and the EU failed to make any significant progress on key issues such as citizens’ rights, trade and border arrangements.
- NCC stock surged 5.35% on the NSE after the company received four new orders worth ₹1,136 crore in August 2023. The orders include two orders worth ₹632 crore from Karnataka Urban Water Supply & Drainage Board and two orders worth ₹504 crore from Andhra Pradesh Capital Region Development Authority.
- The rupee appreciated by 2 paise
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.