The Indian stock market witnessed a volatile week as the benchmark indices Sensex and Nifty oscillated between gains and losses amid mixed global cues and domestic factors. The week started on a positive note as the indices rallied for the second straight session on Monday following encouraging domestic macroeconomic data and a firm trend in global markets. However, the momentum fizzled out as the market remained closed on Tuesday for Ganesh Chaturthi. The indices resumed trading on Wednesday with a gap-down opening and extended losses throughout the day as investors turned cautious ahead of the US inflation data and the ECB policy meeting. The market recovered some ground on Thursday as bargain hunting emerged at lower levels and positive global cues boosted sentiment. The week ended on a high note as the indices surged to fresh record highs on Friday, supported by strong corporate earnings and easing inflation worries in the US.
Here is a date-wise summary of the market performance for the week:
Sep 04, 2023 (Monday): The Sensex gained 240 points or 0.37% to close at 65,628. The Nifty rose 93 points or 0.48% to end at 19,528. The market was driven by fresh foreign fund inflows and intense buying in IT and commodity stocks. Some of the factors that influenced the market were:
- The GST collections for August came in at Rs 1.12 lakh crore, indicating a robust recovery in economic activity.
- The manufacturing PMI for August rose to 52.3 from 51.6 in July, signaling an improvement in factory output and demand.
- The global markets were upbeat as the US jobs data for August showed a slower than expected pace of hiring, easing fears of an early tapering by the Fed.
- The market breadth was positive as 1,727 stocks advanced, 1,181 declined and 162 remained unchanged on the BSE.
Sep 05, 2023 (Tuesday): The market was closed for Ganesh Chaturthi.
Sep 06, 2023 (Wednesday): The Sensex plunged 536 points or 0.82% to close at 65,092. The Nifty fell 151 points or 0.77% to end at 19,377. The market witnessed a broad-based sell-off as investors booked profits at higher levels and adopted a wait-and-watch approach ahead of the key global events. Some of the factors that weighed on the market were:
- The US inflation data for August was due to be released later in the day, which could have a bearing on the Fed's monetary policy stance.
- The ECB was scheduled to hold its policy meeting on Thursday, where it was expected to announce a reduction in its bond-buying program.
- The domestic Covid-19 situation remained worrisome as several states reported a rise in cases and imposed fresh restrictions.
- The market breadth was negative as 2,026 stocks declined, 870 advanced and 153 remained unchanged on the BSE.
Sep 07, 2023 (Thursday): The Sensex recovered 222 points or 0.34% to close at 65,314. The Nifty rose 60 points or 0.31% to end at 19,437. The market bounced back from the previous day's losses as investors found value in select stocks and took cues from the positive global markets. Some of the factors that supported the market were:
- The US inflation data for August came in lower than expected, easing concerns over a faster tapering by the Fed and a spike in interest rates.
- The ECB announced a modest reduction in its bond-buying program, but maintained an accommodative stance and raised its growth and inflation forecasts for the euro zone.
- The domestic corporate earnings season kicked off on a strong note as TCS reported a better than expected profit growth of 14% for the quarter ended September.
- The market breadth was slightly positive as 1,566 stocks advanced, 1,465 declined and 146 remained unchanged on the BSE.
Sep 08, 2023 (Friday): The Sensex soared 1,284 points or 1.97% to close at a record high of 66,598. The Nifty surged 366 points or 1.88% to end at a new peak of 19,803. The market rallied for the third consecutive session as investors cheered the strong corporate earnings and the easing of inflation worries in the US. Some of the factors that boosted the market were:
- The US consumer price index (CPI) for August rose by 0.3%, lower than the expected 0.4%, indicating that inflationary pressures were moderating.
- The domestic corporate earnings season continued to impress as Infosys, HDFC Bank, Reliance Industries and HUL reported better than expected results for the quarter ended September.
- The market sentiment was also lifted by the positive developments on the Covid-19 front as India's daily cases dropped below 30,000 and the vaccination drive crossed the 100 crore mark.
- The market breadth was extremely positive as 2,312 stocks advanced, 519 declined and 119 remained unchanged on the BSE.