Nifty, Sensex May Bounce, if Global Markets Hold – Weekly closing report
Moneylife Digital Team 21 May 2022
We had mentioned in previous week’s closing report that Nifty, Sensex remain weak but with chances of corrective bounce.
 
The major indices opened higher this week and closed with gain.
 
 
On a weekly basis Nifty Metal and Nifty Auto were the biggest gainers whereas Nifty IT was the only loser.
 
On Monday, the indices opened gap up and ended with gain. On the National Stock Exchange (NSE), 1,406 stocks advanced, 689 declined and 63 remained unchanged with advance decline ratio of 2.04.
 
Nifty, Sensex opened gap up after US markets closed higher on Friday. Sector wise Nifty IT and Nifty FMCG were the biggest losers whereas the Nifty PSU Bank and Nifty Realty were the biggest gainers. BSE Small cap and BSE Midcap outperformed their larger peers and closed 1.15% and 1.51% higher respectively. European markets opened lower due to geopolitical tensions related to Finland’s comment to join NATO against the wish of Russia.
 
Adani Group has announced a $10.5 billion deal to acquire Holcim’s shareholding in Ambuja Cements and ACC. Adani Group has now become second largest cement player in India in terms of capacity.
 
On Tuesday, Nifty Sensex opened gap up and surged higher during the day to close near days high. On the National Stock Exchange (NSE), 1,791 stocks advanced, 299 declined, and 41 remained unchanged with advance decline ratio of 5.99.
 
All sectoral indices closed in green with Nifty Metal and Nifty Oil& Gas being the biggest gainers. The broader market indices closed in line with their larger peers.
 
Rupee fell to a record low of 77.80 against US Dollar and closed at record closing low of 77.56. LIC IPO listed at Rs 867, a discount of 8.6% to its issue price of Rs 949 per share.
 
Bharti Airtel’s Q4FY21-22 revenue grew by 22% to Rs 31,500 crore and the profit grew by 164% to Rs 2,008 crore on a y-o-y basis.
 
On Wednesday, the indices opened gap up and ended with loss. On the National Stock Exchange (NSE), 1,151 stocks advanced, 920 declined, and 65 remained unchanged with advance decline ratio of 1.25.
 
Nifty, Sensex opened gap up, went up and remained in green during the first half, declined in the second half to close in red. Sector wise Nifty Realty and Nifty PSU Bank were the biggest losers whereas Nifty FMCG and Nifty Pharma were the biggest gainers. BSE Midcap closed 0.13% down and BSE Small cap closed 0.33% higher. Rupee again closed at record closing low of 77.58 against US Dollar. European car sales fell 20% in April on account of supply chain constraints. UK inflation is at 40 years high of 9%.
 
Group of Ministers have recommended increasing GST rate on online gaming, casinos& racecourse to 28% from 18%. ABFRL’s Q4FY21-22 revenue grew by 25% to Rs 2,283 crore and the company reported net profit of Rs 43.6 crore against a loss of Rs 137 crore in the same quarter last year.
 
On Thursday, the indices opened gap down after the US markets ended deeply in red and ended with loss. On the National Stock Exchange (NSE), 414 stocks advanced, 1,679 declined, and 46 remained unchanged with advance decline ratio of 0.25.
 
Nifty Sensex opened with a deep cut and declined during the day to close near March Lows. All sectoral indices closed in red with Nifty IT and Nifty Metal being the biggest loser whereas Nifty FMCG and Nifty Pharma were the most resilient and fell the least. BSE Midcap and BSE Small declined in line with their larger peers.
 
Rupee closed at another record closing price of 77.7250 against US Dollar three days in a row. Indonesia has lifted Palm Oil export ban from 23 May (Monday). The Supreme Court dismissed review petition filed by SP group seeking a review of 2021 judgement which upheld the Tata group’s decision to remove Cyrus Mistry as executive chairman of Tata Sons.
 
Maruti Suzuki will invest Rs 18,000 crore in Sonipat plant for capacity expansion. JP Morgan downgraded India’s IT sector and expects the slowdown to worsen in 2023 due to potential decline in orders from key markets like US.
 
On Friday, the indices opened gap up and closed with gain. On the National Stock Exchange (NSE), 1,699 stocks advanced, 370 declined, and 55 remained unchanged with advance decline ratio of 4.59.
 
Nifty Sensex opened gap up went up during the day, thanks to stable US markets, it dipped a bit in the middle of session and surged higher in the second half. All indices ended in green, Nifty Media and Nifty Realty were the biggest gainers whereas Nifty IT and Nifty Consumer Durables gained the least. The broader market indices underperformed their larger peers with BSE Midcap and BSE Small cap closing 1.98% and 2.13% higher.
 
RBI transferred a surplus of Rs 30,307 crore to the government for accounting year 2021-22. Thermax’s Q4FY21-22 revenue grew by 26.5% to Rs 1,991.9 crore and the profit declined by 4.4% to Rs 102.5 crore y-o-y. 
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