The week that was: Sensex climbs 1,293 points, Nifty settles above 17,850; RIL jumps over 5%

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Domestic equity market benchmarks ended with strong gains during the week boosted by positive global stocks. Gains were also triggered after the RBI kept the key rates unchanged and remained ‘accommodative’ following a scheduled review. The BSE Sensex settled above the psychological 60,000 mark. The NSE Nifty 50 settled a tad below 17,900 level. In the week ended on Friday, 8 October 2021, the Sensex gained 1,293.48 points or 2.2% to settle at 60,059.06. The Nifty 50 index rose 363.15 points or 2.07% to settle at 17,895.20.

The key equity indices snapped a four-day losing streak and ended with strong gains on Monday. The barometer index, the S&P BSE Sensex, surged 533.74 points or 0.91% to 59,299.32. The Nifty 50 index added 159.20 points or 0.91% to 17,691.25. The equity benchmarks recovered from early lows and climbed for the second session in a row. The barometer index, the S&P BSE Sensex, jumped 445.56 points or 0.75% to 59,744.88. The Nifty 50 index added 131.05 points or 0.74% to 17,822.30.

The equity barometers ended with steep losses on Wednesday, snapping gains in the past two sessions. The barometer index, the S&P BSE Sensex, plunged 555.15 points or 0.93% to 59,189.73. The Nifty 50 index tumbled 176.30 points or 0.99% to 17,646. The domestic equity indices settled with significant gains on Thursday.

Positive global cues and robust quarterly business updates by domestic firms supported buying. The barometer index, the S&P BSE Sensex, surged 488.10 points or 0.82% to 59,677,83. The Nifty 50 index added 144.35 points or 0.82% to 17,790.35.

The domestic stock market ended with strong gains on Friday after the Reserve Bank of India’s Monetary Policy Committee decided to maintain its status quo on interest rates. The barometer index, the S&P BSE Sensex, advanced 381.23 points or 0.64% to 60,059.06. The Nifty 50 index added 104.85 points or 0.59% to 17,895.20.

Buzzing stocks

Reliance Industries (RIL) jumped 5.87%. RIL informed bourses on Thursday that Reliance Retail Ventures (RRVL) through its wholly owned subsidiary, 7-India Convenience Retail, has entered into a master franchise agreement with 7-Eleven, Inc. for the launch of 7-Eleven convenience stores in India. The first 7-Eleven store is set to open on Saturday (9 October) in Andheri East, Mumbai.

Tata Motors surged 14.88%. The media reported that the auto major is seeking to buy Ford’s units in Tamil Nadu and Gujarat states. According to reports, Ford’s manufacturing plants could help Tata Motors augment capacity as it focuses on eco-friendly vehicles.

Hero MotoCorp shed 0.15%. The company dispatched 530,346 units of motorcycles and scooters in the month of September 2021. The company dispatched 7,15,718 units in September 2020.

Titan gained 8.69%. The company said its jewellery segment revenue jumped 78% year on year (YoY) in Q2 FY22. CaratLane’s business revenue jumped 95% year on year in Q2 FY22. The watch segment revenue grew by 73% YoY in Q2 FY22. Eye wear segment revenue surged by 74% YoY in Q2 FY22.

RBI policy outcome

On the macro front, the Reserve Bank of India’s Monetary Policy Committee decided to maintain its status quo on interest rate. RBI’s six-member Monetary Policy Committee (MPC) at its meeting held on 8 October 2021) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4%. The reverse repo rate under the LAF remains unchanged at 3.35% and the marginal standing facility (MSF) rate and the bank rate at 4.25%.

The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward.