Market barometers dropped and extended losses after a gap down opening on Monday. The BSE Sensex was trading at around 57,400 points while the Nifty was at around 17,100 points. Healthcare stocks gained but financial, metal, oil & gas and auto shares, dragged the indices to the red. On Wednesday, the Rupee stooped to an all-time low of 81.52 against the Dollar.
Benchmark indices suffered minor cuts on Friday after which, they returned to the green to snap their seven-day losing streak. The RBI’s rate-setting panel hiked repo rates by 50 bps, in line with analysts’ expectations. The Sensex closed at 57,400 points, while the Nifty 50 settled at 17100 points.
Market Movers
Some of the top gainers this week were Bajaj Electricals Ltd. ( up 11.63%), Krishna Institute of Medical Sciences Ltd. (up 11.32%), Mazagon Dock Shipbuilders Ltd. (up 10.27%), Rites Ltd. (up 9.9%), Tejas Networks Ltd. (up 9.15%).
On the other hand, some of the top losers were Adani Transmission Ltd (down 15.05%), Varroc Engineering Ltd. (down 13.22%), Nazara Technologies Ltd. (down 10.87%), Macrotech Developers Ltd. (down 10.77%), and Balaji Amines Ltd. (down 10.75%).
The Recap
In this week’s recap, we shall take a look at salary hikes of the Indian workforce, Adani group’s investment plans, why FPIs turned net sellers of equity this month and more.
Indian workforce to get an average salary hike of 10.4% in 2023 as per a report
● Despite concerns about global macroeconomic conditions and rising inflation, salaries in India are likely to see an increase of 10.4 per cent on average in 2023, as compared to the actual increase of 10.6 per cent in 2022, according to a survey conducted by Aon plc.
● As per the survey reports. India is the only country with the highest salary increase in 2022 to date, that is, 10.6% as compared to other countries including Germany (3.5%), the UK (4%), the USA (4.5%), China (6%), Brazil (5.6%), and Japan (3%).
● In contrast, India had reported a single-digit salary increase in the past three years. It was at 9.3% in 2019 which later fell down to 6.1% in 2020 and rose to 9.3% in 2021.
Adani Group to invest $100 billion by 2032
● Gautam Adani, the second richest person in the world on Tuesday said that the group would invest $ 100 billion over the next decade.
● This investment will primarily be in the energy transition and digital opportunities business, in addition to sectors such as aerospace and defence, metals and petrochemicals.
● Recently the group acquired Ambuja Cements Ltd and ACC Ltd, for $ 6.5 billion. Further, it has also announced entry into the alumina and iron ore business with an investment of up to ₹57,575 crores.
Why FPIs turned net sellers of equity in September
● Selling by FPIs has led to a steep correction in the markets. They have sold equities worth more than ₹17,000 crores since 14 September. Experts say that this trend will continue in the near term and that they expect volatility in FII flows.
● Some of the major reasons for outflows include rate hikes in the US and expectations of more, concerns about a global slowdown and a looming recession, geopolitical issues, and a weakening currency.
● Deepak Jasani of HDFC Securities said that once there is a clear signal that the US Fed is done with rate hikes, FPI flows into India will increase.
The Sensex up 1000 points even though the RBI hiked interest rates
● The RBI hiked interest rates by 50 bps, the fourth increase and the RBI has now raised interest rates by a total of 190 basis points since its first unscheduled hike in May.
● Analysts said that the investors might be drawing comfort from the fact that the central bank is nearing the end of the rate hike cycle in India. They said that this was a short covering in the market as the RBI did not hurl a negative surprise.
● Deputy Governor Mr Michael Patra’s response to a question in the press conference was, “soft-landing is for the developed economies, for India it’s a take-off” sums up everything.
Telecom shares surged ahead of 5G services launch
● The shares of telecom companies surged three to five per cent on Friday ahead of the launch of 5G services which is scheduled on October 1, 2022.
● The fifth generation of 5G is expected to unleash new economic opportunities and societal benefits, serving as a transformational force for Indian society. The cumulative economic impact of 5G on India is estimated to reach $450 billion by 2035.
● 5G is multiple times faster than 4G. It supports lag-free connectivity and enables billions of connected devices to share data in real-time.
Written by Simran Bafna
Disclaimer
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