Due to weak global cues and mounting concerns about the new Omicron version, global inflation fears, and the Fed hinting at early tapering, markets remained volatile during the week ended December 3. Domestic factors, such as stronger GDP and manufacturing PMI data, as well as the second largest GST collection, helped the market conclude with a positive percentage gain.
The BSE Sensex rose 589.31 points (1 percent) to 57,696.46, while the Nifty50 rose 170.25 points (0.99 percent) to 17,196.7 at the end of the week.
In November, however, the Nifty lost 3.9 percent, while the Sensex fell 3.8 percent.
In the last month, the BSE Metal and Bankex indexes have lost about 9% each, while the Realty, Auto, and Energy indices have dropped 4-5 percent. The BSE Telecom index, on the other hand, rose by more than 6%, while the IT and Power indices rose by 2% to 3%.
The BSE Midcap index dropped 2.3 percent, while the BSE Smallcap index stayed the same. The Midcap and Smallcap indices, on the other hand, both gained a percent in the previous week.
Smallcap equities such as Aurum Proptech, Tata Teleservices (Maharashtra), Brightcom Group, GRM Overseas, KPIT Technologies, JBM Auto, Cerebra Integrated Technologies, Jindal Worldwide, Olectra Greentech, and Mirza International surged from 10% to 122 percent in November.
Gayatri Projects, Vikas WSP, Ujjivan Financial Services, Godawari Power & Ispat, Graphite India, Valiant Organics, Spandana Sphoorty Financial, Manappuram Finance, GNA Axles, Bajaj Consumer Care, Sequent Scientific, and Spencer Retail, on the other hand, had a 10-28 percent decline.
“Positive domestic macroeconomic data supporting economic growth helped bolster investor mood throughout the early half of the week,” said Vinod Nair, Geojit Financial Services’ Head of Research.
Following the second COVID-19 wave, India’s GDP climbed by 8.4% in the second quarter as economic activity returned to normal.
“By the end of the week, however, the tone had altered due to mounting fears about Omicron following reports of instances in India. “Investors were also nervous after Federal Reserve Chair Janet Yellen warned there was a prospect of a faster conclusion to the bond-buying programme and an interest rate hike,” Nair noted.
Jindal Steel & Power, JSW Energy, Ashok Leyland, Bharat Heavy Electricals, Mahindra & Mahindra Financial Services, Steel Authority of India, and Power Finance Corporation were among the midcaps that gained 10-33 percent, while Jindal Steel & Power, JSW Energy, Ashok Leyland, Bharat Heavy Electricals, Mahindra & Mahindra Financial Services, Steel Authority of India, and Power Finance Corporation were among the losers.
The BSE 500 index was dragged down by 88 stocks that plummeted 10-25 percent in November, including Ujjivan Financial Services, Graphite India, IndusInd Bank, Spandana Sphoorty Financial, Manappuram Finance, Bajaj Consumer Care, Sequent Scientific, GE Power India, and CreditAccess Grameen.
“After the market entered oversold territory and the major targets of the bearish pattern were met, we observed a relief bounce,” said Ruchit Jain, 5paisa.com’s Trading Strategist. “While the Bank Nifty index found support near its 200-day moving average over the week, there was little buying interest, and the pullbacks were primarily short covering moves.”
He added a sell-off in select heavyweights was evident on Friday as the Nifty approached its 20 DEMA resistance around 17500. “While the Nifty has created a support base around 16800, the chart structure indicates that we are still not out of the woods,” Jain said. “17500 is now the critical threshold that the bulls must clear in order to attract more purchasing activity.”