Weekly Wrap August 19 to 23: SENSEX, NIFTY extend gains for second week amid eye on Jackson Hole meet

• On a weekly basis, NIFTY advanced 282 points, and SENSEX gained 650 points.
• Ola Electric Mobility shares have rallied over 65% since listing on August 9.
• FIIs turned net sellers this week, selling shares worth over ₹3,500 crore in the cash segment.

We are back with a quick recap of the stock markets this week as the benchmark indices closed with positive momentum, rising up to 1%.

Let’s take a look at what kept D-Street busy.

Benchmark indices NIFTY and SENSEX gained around 1% this week, driven by firm global trends. Stock markets witnessed largely a range-bound trade in the week as investors awaited cues on rate cuts and monetary policy from the US Federal Reserve.

US Federal Reserve Chair Jerome Powell’s speech at central bankers’ annual symposium from August 23-25 in Jackson Hole in Wyoming of the United States turned the focal point for the investors world over. Easing dollar and US bond yields also put emerging markets like India back on investors’ radar, but high valuation concerns capped gains in Indian equities.

Indian stock markets started the week on a muted note. While the recovery in global markets supported Indian equities, selling in banking shares restricted gains. Benchmark indices saw a mixed trend at the close. NIFTY advanced to close at 24,580 points, while SENSEX slipped to 80,424.68.

On Tuesday, SENSEX and NIFTY picked up momentum on a push by banking and financial shares, NIFTY gained 126 points and SENSEX rose by 378 points. Easing geopolitical worries and growing hopes of a US Fed rate cut supported the uptrend.

NIFTY closed above the 24,700 level on Wednesday and SENSEX at the 80,900 mark with buying in FMCG, pharma and metal shares. Stock markets witnessed modest gains on Thursday on the back of positive global sentiment. Weak US non-farm data and FOMC meeting minutes raised the expectations of a 25 basis point rate cut by the US Fed. NIFTY rose by 41 points to close above the 24,800 level, while SENSEX gained 141 points to settle above 81,000.

SENSEX and NIFTY closed almost flat on Friday in a see-saw trade ahead of the address of the US Fed chair Jerome Powell at the Jackson Hole Symposium.

SENSEX closed at 81,086.21, up by 33.02 points or 0.04%, while NIFTY closed at 24,823.15, up 11.65 points or 0.05%.

On a weekly basis, NIFTY advanced 282 points, or 1.15%, while SENSEX rose 650 points, or 0.8%, marking their second straight week of gains.

Broader market outperforms benchmark indices

In the broader markets, NIFTY Midcap and Small Cap Indices outperformed the benchmark indices. NIFTY Midcap indices gained up to 2%, while smallcap indices rose up to 4%.

Among sectoral indices, NIFTY Consumer Durables, PSU Bank, and Metal were the lead gainers, rising by 3% each. NIFTY Pharma, FMCG and Financial Services gained around 2% each.

NIFTY Realty was the lone loser, dropping by over 2%.

Ola Electric shares zoom 65% in first 2-week

Since listing on August 9, shares of electric two-wheeler maker Ola Electric Mobility Ltd. have rallied 65% against the issue price in the first two weeks of trade amid high volatility.

In the last 10 sessions since the market debut, Ola Electric shares have hit the upper circuit four times on August 9, 12, 16 and 19. The rally in the stock was seen after the company announced its foray into the electric motorcycle segment, and it received approval under the Production Linked Incentive (PLI) scheme for a few models.

The stock hit an intraday high of ₹157.4 apiece on the NSE on August 20, giving two times return to IPO investors, but closed lower 6% on profit-taking. The stock declined further by 5% on August 22 and over 4% on August 23 to end the week lower by 5%.

FIIs turn net sellers, DIIs buying backed Indian shares

Foreign investors turned net sellers on most sessions this week. FIIs sold shares worth over ₹3,500 crore in the cash segment this week on high valuation concerns. Domestic investors on the other hand remained buyers of Indian stocks putting in more than ₹10,000 crore on a net basis. Experts believe that the intensity of FII selling is declining.

Anil Ambani-led Reliance Group shares decline on SEBI action

Anil Ambani-led Reliance Group companies declined on Friday after market regulator SEBI barred Ambani and 24 other entities from the market for five years for alleged diversion of funds.

What lies ahead?

Stock markets will react next week to US Fed chair Jerome Powell’s speech at the Jackson Hole symposium. In the absence of domestic triggers, global trends will drive Indian markets. Indian markets trade above the 20-day simple moving average, which is largely positive and the uptrend is expected to continue.