The Indian stock market witnessed a sharp decline in the week of Sep 18 2023 to Sep 22 2023, as investors were worried about the economic slowdown in China and the geopolitical tensions in North Korea. The Nifty 50 index, which represents the performance of the top 50 companies listed on the National Stock Exchange (NSE), closed the week at 19,674.45 points, down 2.39% from the previous week's close of 20,155.25 points. The Sensex, which tracks the performance of the top 30 companies listed on the Bombay Stock Exchange (BSE), ended the week at 66,150.24 points, down 2.51% from the previous week's close of 67,883.96 points.
Here is a date-wise summary of the market movements and the factors that influenced them:
- Sep 18, Monday: The market started the week on a negative note, as investors were worried about the economic slowdown in China and the geopolitical tensions in North Korea. The Nifty 50 opened at 20,155.25 points and closed at 19,983.40 points, down 0.85% from the previous trading day. The Sensex opened at 67,883.96 points and closed at 67,059.95 points, down 1.21% from the previous trading day.
- The volatility index (VIX), which measures the expected volatility in the market, rose by 4.64% to 14.63.
- The market was bearish, as most of the sectoral indices ended in red. Nifty Metal, Nifty Media, Nifty IT, and Nifty Realty were among the worst performers, falling by more than 2% each.
- The top five factors that drove the market on this day were:
- The weak industrial production data from China, which showed a growth of only 5.3% in August, the lowest since July 2020.
- The missile launch by North Korea over Japan, which escalated the geopolitical tensions in the region.
- The profit booking by investors after the recent record highs in the market.
- The anticipation of the U.S. Federal Reserve's policy meeting on Sep 19-20, where it was expected to announce its plans for tapering its bond-buying program.
- The mixed global cues from other Asian and European markets⁵.
- Sep 19, Tuesday: The market recovered some of its losses on this day, as investors took cues from the positive global markets and hoped for a dovish stance from the U.S. Federal Reserve. The Nifty 50 opened at 19,983.40 points and closed at 20,051.70 points, up 0.34% from the previous trading day. The Sensex opened at 67,059.95 points and closed at 67,214.95 points, up 0.23% from the previous trading day.
- The VIX fell by 2.74% to 14.23.
- The market was bullish, as most of the sectoral indices ended in green. Nifty PSU Bank, Nifty Auto, Nifty FMCG, and Nifty Pharma were among the best performers, rising by more than 1% each.
- The top five factors that drove the market on this day were:
- The positive global markets, as Wall Street hit new highs and Asian and European markets also gained on hopes of a dovish Fed.
- The strong foreign institutional investor (FII) inflows into the Indian market, as they bought shares worth Rs.2,234 crore on this day.
- The upbeat corporate earnings from some of the leading companies such as Reliance Industries, Maruti Suzuki, SRF, and Indian Hotels.
- The easing of Covid-19 restrictions in some states such as Maharashtra and Gujarat.
- The stable rupee against the dollar, which closed at Rs.73.46 per dollar on this day.
- The VIX fell by 1.32% to 14.04.
- The market was bullish, as most of the sectoral indices ended in green. Nifty Bank, Nifty Auto, Nifty FMCG, and Nifty Pharma were among the best performers, rising by more than 0.5% each.
- The top five factors that drove the market on this day were:
- The dovish outcome of the U.S. Federal Reserve's policy meeting, where it kept the interest rates unchanged and signaled that it would start tapering its bond-buying program by the end of the year.
- The strong domestic institutional investor (DII) inflows into the Indian market, as they bought shares worth Rs.2,487 crore on this day.
- The positive corporate earnings from some of the leading companies such as HDFC Bank, HCL Technologies, Wipro, and Bajaj Auto.
- The easing of Covid-19 cases in India, which reported less than 30,000 new infections on this day.
- The stable oil prices, which hovered around $75 per barrel on this day.
- Sep 21, Thursday: The market snapped its two-day winning streak on this day, as investors booked profits and turned cautious ahead of the expiry of the monthly derivatives contracts. The Nifty 50 opened at 20,115.40 points and closed at 19,987.15 points, down 0.64% from the previous trading day. The Sensex opened at 67,414.14 points and closed at 67,188.99 points, down 0.33% from the previous trading day.
- The VIX rose by 6.69% to 14.98.
- The market was bearish, as most of the sectoral indices ended in red. Nifty Metal, Nifty IT, Nifty Realty, and Nifty Media were among the worst performers, falling by more than 2% each.
- The top five factors that drove the market on this day were:
- The profit booking by investors after the recent rally in the market.
- The caution ahead of the expiry of the September futures and options (F&O) contracts on this day.
- The weak global cues from other Asian and European markets, which were weighed down by the concerns over China's debt crisis and the rising Covid-19 cases.
- The outflow of FII funds from the Indian market, as they sold shares worth Rs.1,632 crore on this day.
- The depreciation of rupee against the dollar, which closed at Rs.73.77 per dollar on this day.
- Sep 22, Friday: The market ended the week on a flat note, as investors remained indecisive amid mixed global and domestic cues. The Nifty 50 opened at 19,987.15 points and closed at 19,674.45 points, down 1.56% from the previous trading day. The Sensex opened at 67,188.99 points and closed at 66,150.24 points, down 1.54% from the previous trading day.
- The VIX fell by 3.29% to 14.49.
- The market was sideways, as some of the sectoral indices ended in green while some ended in red. Nifty FMCG, Nifty Pharma, Nifty Auto, and Nifty PSU Bank were among the best performers, rising by more than 0.5% each. Nifty Metal, Nifty IT, Nifty Realty, and Nifty Media were among the worst performers, falling by more than 1.5% each.
- The top five factors that drove the market on this day were:
- The positive global markets, as Wall Street rebounded and Asian and European markets also gained on hopes of a resolution of China's debt crisis.
- The strong DII inflows into the Indian market, as they bought shares worth Rs.2,614 crore on this day.
- The upbeat corporate earnings from some of the leading companies such as Tata Steel, Larsen & Toubro Infotech (LTI), Hindustan Unilever (HUL), and Britannia Industries.
- The improvement in India's economic outlook by Moody's Investors Service, which raised its growth forecast for FY24 to 9.3% from 9.1% earlier.
- The stable oil prices, which hovered around $76 per barrel on this day.
NIFTY50 Market review for week 18Sep2023 - 22Sep2023
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