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Benchmark Indian indices closed higher in a volatile week and had gained for the third week in a row. The Sensex rose 0.3% to 58,305.07 and the Nifty was up 0.26% to 17,369.25. Broader markets saw better inflows compared with benchmark indices. The BSE Mid-Cap index gained 1.33% to 24,705.29. The BSE Small-Cap index advanced 1.24% to 27,645.10.
Among stocks in the Sensex, Airtel was the top gainer at 4.25%. HDFC and HCL Tech rose 2.58% and 2.08%, respectively. Reliance, HUL, and ITC were other heavyweights which added 1% each during the week.
Shares of the following companies were top laggards for the week: NTPC, Sun Pharma, Bajaj Auto, Tata Consultancy Services, Bajaj Finance, Power Grid Corporation of India, Larsen & Toubro and Axis Bank.
IRCTC stock rallied in double digits as the economy started to reopen and as the company said it will start India’s first indigenous cruise liner from September 18.
The country’s top carmaker Maruti Suzuki said it has increased the price of select models due to rising input cost with effective from September 6,2021. The company also said its August production declined 8% due to chip shortage.
TVS Motor had announced its new distribution partnership with ETG Logistics, which is part of ETG, a global conglomerate present in 48 countries with expertise across various industries. As part of the partnership, ETG will operate dealerships for TVS Motor in South Africa.
Economy News
Industrial production rose 11.5% in July 2021 compared to a decline of 10.5% in the same period last year, according to data released by the government. Industrial production climbed 34.1% in Apr-July period. Mining production rose 19.5% in July and for the Apr-July period, it rose 25.3%. Manufacturing sector saw a growth of 39% during the Apr-July period.
The central government had approved a production-linked incentive (PLI) scheme for textiles sector. The scheme is valid for five years and the centre has allocated Rs 10,683 crore for man-made fibre (MMF) apparel, MMF fabrics and technical textiles. Companies like KPR Mills, Raymond and Trent are expected to benefit. Shares of KPR surged 13.63% on Friday after the PLI news report.
Global Markets
In the US market, investors’ sentiments were weak on concerns over economic growth and inflation worries. The stocks slipped after the country’s labour department released data on producer prices which rose 0.7% in August. The rise in prices is likely to weigh on profit margin of American companies. During the week, the Dow Jones index declined 2.15%, the S&P 500 fell 1.7% and the Nasdaq lost 1.61%.
The U.S. economic growth rate slowed down in July and August, according to the Federal Reserve’s Beige Book survey released on Wednesday. The survey showed the deceleration in economic activity was due to a pullback in dining out, travel, and tourism in most districts, reflecting safety concerns due to the rise of the Delta variant.
Japanese shares rose during the week on hopes of fresh fiscal stimulus under a new prime minister, as the current Prime Minister Yoshihide Suga decided to step down. The Nikkei 225 Index gained 4.30%, while the broader TOPIX advanced 3.78%. Further, Japan’s second-quarter gross domestic product growth was revised up to an annualized rate of 1.9% from a preliminary reading of 1.3%.
Chinese equities extended gains during the week. The Shanghai Composite index gained 3.4% and the CSI 300 rallied 3.5%. The country’s trade data also improved investors’ outlook. Merchandise exports in August increased 25.6% over a year-ago period, while imports climbed 33.1%, according to the country’s statistics agency. China’s monthly trade surplus rose to $58.34 billion in August, compared with July’s $56.58 billion.