Broader indexes saw unchanged closing prices for the BSE Small-cap index, a 0.7 percent decline for the BSE Large-cap index, and a 0.5 percent decline for the BSE Mid-cap index.
Indian benchmark indices continued to decline in the abbreviated week as investors’ confidence was depressed by the poor monsoon, rupee depreciation, and high inflation rates in India. On the global front, however, investors were troubled by the soaring US bond, rising dollar, expectations of a Fed rate hike, and slowing Chinese demand.
BSE Sensex decreased by 0.57 percent, or 373.99 points, to close at 64,948.66 this week, and Nifty50 decreased by 0.60 percent, or 118.1 points, to conclude the week at 19,310.20.
Broader indexes saw unchanged closing prices for the BSE Small-cap index, a 0.7 percent decline for the BSE Large-cap index, and a 0.5 percent decline for the BSE Mid-cap index.
“In response to the weakening in the majority of the world’s equity markets, the Sensex and Nifty fell this week. There was some correction in the BSE Mid-cap and BSE Small-cap indices. Sectorally, the majority of the indices experienced losses. BSE Metals, BSE Energy, and BSE Oil & Gas are some of the sectors indexes that underperformed the overall markets among them, according to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
The majority of India saw weak monsoon conditions, which led to a weak monsoon in August. In July 2023, India’s CPI inflation shot up to 7.4% (from 4.8% in June 2023), driven primarily by increased vegetable costs. Although Brent crude oil prices have corrected this week, they are still higher than they were a few months ago. Results for Q1FY24 revealed weak consumption demand, although investment demand remained robust. Additionally, Q1FY24 statistics shown additional expansion in profitability,” he continued.