Metal Gains The Most

India’s manufacturing sector activities witnessed the strongest growth rate in three months on the back of recovering demand conditions, reducing fresh corona virus cases, mass vaccinations and easing of local restrictions. 

The Indian capital markets are riding the purple patch like no other. During the fortnight, benchmark indices Nifty and Sensex touched all-time highs of 16,349.45 and 54,717.24, respectively. Both indices ended the fortnight on a strong note in the green territory, gaining more than 2.5 per cent each. The mid-cap and small cap indices failed to replicate a similar trend and underperformed the frontline indices. The Mid-Cap index lost 0.31 per cent and the Small -Cap index soared 0.76 per cent over the last two weeks. The Monetary Policy Committee (MPC) during its latest meeting decided to maintain status quo and keep the interest rates unchanged.

Currently, the repo rate stands at 4 per cent and the reverse repo rate at 3.35 per cent. Reserve Bank of India (RBI) Governor Shaktikanta Das said the policy stance continues to be ‘accommodative’. The committee has also retained its GDP growth projection of 9.5 per cent for FY22. However, the CPI inflation forecast for 2021-22 has been revised to 5.7 per cent from the earlier 5.1 per cent. India’s manufacturing sector activities witnessed the strongest growth rate in three months on the back of recovering demand conditions, reducing fresh corona virus cases, mass vaccinations and easing of local restrictions.

The Monetary Policy Committee (MPC) during its latest meeting decided to maintain status quo and keep the interest rates unchanged.

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose from 48.1 in June to 55.3 in July. Bankex index climbed 2.88 per cent with support from market leaders HDFC and Kotak Mahindra Bank which gained more than 7 per cent each in the previous week. The IT index rose by 3.98 per cent and Infosys market capitalisation surpassed the Rs 7 trillion mark as the stock price recorded a new lifetime high. July automobile sales figures indicated a strong rebound in demand across segments. The Auto index rose by 0.68 per cent to end the fortnight at 22,951.19. [EasyDNNnews:PaidContentStart]

The FMCG, Healthcare and Realty indices ended on a flat note, increasing by 0.20 per cent, 0.13 per cent and 0.16 per cent, respectively. Metal index rallied 7.38 per cent and was the top gainer during the fortnight. Steel stocks outperformed as there is a possibility that the Chinese government could impose export tariffs on steel products which will help Indian steel manufacturers expand market share. Also, a Bloomberg report stated that India’s steel consumption is set to break records this year as construction activities revive. Trading data shows that FIIs were net sellers to the tune of Rs 3,256.76 crore while DIIs were net buyers to the tune of Rs 11,190.04 crore during the fortnight.