Weekly Market Snap:
Weekly Market Movement:
Indian stock markets continued their upward trajectory for the third consecutive week, with benchmark indices reaching record highs. The S&P BSE Sensex surged past the 67,800 level, while the Nifty 50 index settled comfortably near the 20,200 mark. However, the broader market, represented by the BSE Mid-Cap and Small-Cap indices, deviated from the trend, concluding a three-week upward trajectory.
The Sensex posted impressive growth, surging by 1,239.72 points or 1.86% to reach a closing value of 67,838.63. Similarly, the Nifty 50 index exhibited strength, advancing by 372.40 points or 1.88%, ultimately closing at 20,192.35. In contrast, the BSE Mid-Cap index experienced a minor decline of 0.51%, concluding the week at 32,505.37, while the BSE Small-Cap index slipped by 1.14%, closing at 37,828.56.
Economic Update:
Economic indicators showcased a mixed picture, with deflationary pressures persisting in wholesale prices while industrial production registered substantial growth. Meanwhile, retail inflation exhibited a decline, primarily due to easing vegetable prices, offering some relief to consumers.
India's wholesale price index (WPI) inflation for August remained in negative territory for the fifth consecutive month. The annual WPI inflation rate for August 2023 stood at -0.52% (Provisional), compared to -1.36% in July 2023. This deflationary trend was primarily driven by declining prices in sectors such as mineral oils, basic metals, chemicals, textiles, and food products compared to the same month the previous year.
Conversely, India's index of industrial production (IIP) exhibited robust growth, increasing by 5.7% in July 2023, reaching a five-month high. This substantial growth, compared to 3.7% in June 2023 and 2.2% in July 2022, was driven by a 4.6% expansion in the manufacturing sector, which holds a significant 77% weightage in the IIP. Additionally, the Basic Metal sector saw impressive growth at 12.8%, while mining output rose by 10.7%, and electricity production increased by 8% in July 2023.
In contrast, India's retail inflation, measured by the Consumer Price Index (CPI), decreased to 6.83% in August 2023. Rural areas experienced a slightly higher inflation rate of 7.02% compared to urban areas at 6.59%. This decline in CPI was attributed to a drop in vegetable prices, following a peak of 7.44% in July. The Consumer Food Price Index (CFPI) for August also decreased to 9.94%, down from 11.51% in July.
