At 11 am on Monday, the headline equity indices, i.e. Sensex and Nifty 50 fell sharply post US market’s reaction to the newly-arisen fear of aggressive rate hike by Federal Reserve.   

 Indices witnessed a sharp recovery towards the end as Nifty closed 12 points higher at 17,956. Sensex jumped 37 points while the broader indices such as Nifty Midcap and Nifty Smallcap also inched higher by 0.19 per cent & 0.16 per cent, respectively.  

Indices roared on Wednesday as Nifty closed above the 17,900 level. It soared 0.67 per cent while Sensex jumped 417 points.

The shares in Asia Pacific markets were seen gaining as Japan’s export data for July came out better at 19 per cent, beating the analysts’ estimates. Nikkei Composite is trading higher by 1.17 per cent whereas China’s Shanghai Composite is trading flat, owing to good earnings results by food giant Meituan. Bank of New Zealand has increased its lending rate by 50 basis points to 3 per cent in order to curb inflation. 

Indices closed the week on a higher note as Nifty rose 0.22 per cent to end at 17,700 while Sensex jumped 130 points. Nifty Midcap and Nifty Smallcap advanced 0.73 per cent & 0.25 per cent, respectively.

In context to market expectations from Friday’s RBI MPC meet, Sumit Chanda, Founder & CEO of JARVIS Invest says, “While there have been some indications of the inflation moderating, with the Brent being still above the $100 mark and a falling rupee, we can expect RBI to hike the repo rate by about 50 bps.

The gradual increase in the cost of goods and services is known as inflation. A nation's economy is in danger when inflationary forces are present, but deflation, also known as negative inflation is a much more dangerous problem. 

Analysts and investors are placing their bets on India's speciality chemical industry, which is anticipated to profit from the current international circumstances greatly. The market for speciality chemicals is migrating to India as a result of the Russia-Ukraine crisis and its effects while Indian businesses are well-positioned to benefit from this development. An added advantage is the decline in the rupee.  

At 11.15 am on Friday, the headline equity indices, i.e. Sensex and Nifty 50 were trading marginally higher, as Markets are giving mixed reactions to the rising inflation. 

At 12.30 pm on Thursday, the headline equity indices, i.e. Sensex and Nifty 50 were trading flat, as Mainland China markets rose in Asia-Pacific on Thursday after Australia’s unemployment rate fell and Singapore tightened its monetary policy.