The Indian stock markets exhibited resilience during the week of August 12 to August 16, 2024, amid global uncertainties and domestic earnings reports. Here’s a detailed review of the performance on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Market Overview
The week was marked by fluctuations in both the BSE Sensex and the NSE Nifty, largely driven by mixed global cues, corporate earnings announcements, and geopolitical tensions.
- Sensex: The BSE Sensex closed the week at 66,970.56, reflecting a gain of approximately 0.5% from the previous week. The index saw some volatility but managed to hold its ground, supported by strong performance in sectors like FMCG, IT, and consumer goods.
- Nifty 50: The NSE Nifty 50 ended the week at 19,850.45, up by about 0.4%. Despite mid-week dips due to profit booking in select sectors, the index rebounded on the back of positive earnings surprises and strong foreign institutional investor (FII) inflows.
Sectoral Performance
- IT and FMCG: IT stocks saw a rally, supported by robust earnings from major players. The FMCG sector also performed well, driven by strong demand and positive quarterly results.
- Banking and Financials: These sectors experienced some pressure due to profit booking, despite the overall positive sentiment. Key players like HDFC Bank and ICICI Bank reported stable performance, but investors were cautious.
- Metals and Energy: The metals sector was under pressure due to weak global demand and falling commodity prices. Energy stocks, particularly oil and gas, faced headwinds from fluctuating crude oil prices, which remained volatile throughout the week.
Key Drivers
- Global Factors: Global markets were influenced by mixed economic data from the US, including retail sales figures and concerns over inflation. Geopolitical tensions in the Middle East also impacted investor sentiment, leading to a cautious approach.
- Domestic Earnings: The ongoing Q1FY25 earnings season played a significant role, with several companies across sectors reporting better-than-expected results, which supported the indices.
- FII Inflows: Foreign Institutional Investors (FIIs) continued to be net buyers, contributing to the upward momentum in the Indian markets. Over the past year, FIIs have pumped in around ₹64,824 crore into Indian equities, signaling strong foreign interest in the market.
Outlook
Going into the next week, market participants will be closely watching global cues, particularly developments in the US and China, as well as domestic economic data, including inflation and industrial production figures. The overall sentiment remains cautiously optimistic, with a focus on stock-specific movements based on the ongoing earnings season.
This week highlighted the resilience of the Indian stock markets amidst a challenging global environment, with sectors like IT and FMCG leading the charge, while metals and banking remained subdued.
