Market Closing Report for the Week Ending June 16, 2023
- June 17, 2023
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- Category: Blog
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Market Closing Report for the Week Ending June 16, 2023
The Indian stock market ended the week on a mixed note, with the Sensex and Nifty indices closing lower on Friday. The Sensex fell 0.2% to 54,326.22, while the Nifty declined 0.3% to 16,240.45.
The market was weighed down by concerns over rising inflation and interest rates. The Reserve Bank of India (RBI) is expected to raise interest rates in the coming months to combat inflation, which could dampen economic growth.
However, the market was also supported by strong corporate earnings. Several companies reported better-than expected results for the March quarter, which helped to boost investor sentiment.
Overall, the market is expected to remain volatile in the coming weeks, as investors weigh the risks and opportunities in the global economy.
Here are some of the factors that affected the market this week.
- Rising inflation: Inflation in India rose to 7.04% in May, the highest level in eight years. This has raised concerns that the RBI may be forced to raise interest rates more aggressively than expected, which could dampen economic growth.
- Interest rate hikes: The US Federal Reserve is expected to raise interest rates by 0.75% in July, which could lead to higher borrowing costs for Indian companies and consumers.
- Weak global markets: Global stock markets have been volatile in recent weeks, as investor worry about the impact of rising inflation and interest rates on economic growth.
- Strong corporate earnings: Several Indian companies reported better-than-expected results for the March quarter, which helped to boost investor sentiment.
Here are some of the key market factors for the week:
- Sensex: The Sensex is the benchmark index for the Indian stock market. It is a price-weighted index of the 30 largest companies listed on the Bombay Stock Exchange (BSE). The Sensex closed the week at 54,326.22, down 0.2%. This was the third consecutive week of decline for the Sensex.
- Nifty: The Nifty is the benchmark index for the National Stock Exchange (NSE). It is a market-weighted index of the 50 largest companies listed on the NSE. The Nifty closed the Week at 16,240.45, down 0.3%. This was the second consecutive week of decline for the Nifty.
- Broader markets: The broader markets underperformed the benchmark indices during the week. The BSE Midcap index fell 0.7%, while the BSE Small-Cap index declined 1.1%. This suggests that investors were more cautious about investing in smaller companies.
- Foreign institutional investors (FIIs): FIIs were net sellers of Indian equities worth Rs 1,213 crore ($153 million) during the week. This was the fourth consecutive week of net selling by FIIs. FIIs have been selling Indian equities due to concerns about rising inflation and interest rates in India and the US.
- Domestic institutional investors (DIIs): DIIs were net buyers of Indian equities worth Rs 1,204 crore ($152 million) during the week. This was the third consecutive week of net buying by DIIs. DIIs have been buying Indian equities as they believe that the Indian market is undervalued.
Market Outlook
The market is expected to remain volatile in the coming weeks, as investors weigh the risks and opportunities in the global economy. However, strong corporate earnings could help to support the market in the near term.
