This week in a nutshell (1st – 3rd November)
Technical talks
NIFTY opened the week on 1st November at 17,783 and closed on 3rdNovember at 17,829. It made a weekly gain of ~0.25%. Nifty is trading at an RSI of 51 with support at 17,613 and resistance at 17,846.
Among the sectoral indices, REALTY (+9.9%), PSU BANK (+4.5%), and MEDIA (+4.0%) led the gainers. There were no sectoral losers this week.
Weekly highlights
- US markets continued their upward trend S&P 500 rose ~1.8% and Nasdaq also gained ~2.8% this week.
- The US Labor market got back on track in October to beat the estimates and broad-based payroll gains show greater progress filling millions of vacancies as the effect of declining in delta variant.
- Reserve Bank of India announced a revised prompt corrective actions framework for banks which will be effective from 1st of Jan 2022. Capital adequacy, asset quality, and leverage will be important parameters for the monitoring banks under the new frameworks.
- The government of India reduced the Central Excise Duty on Petrol and Diesel by Rs 5 and Rs 10respectively. The Government said the reduction in excise duty will help boost consumption and keep inflation low.
- US Democrats passed USD 1 trillion infrastructure bill. Administration oversees the biggest upgradation of America’s roads, railways, and other transportation infrastructure.
- NITI Aayog and World Bank are working together to facilitate a program for faster and easier financing of electric vehicles. The interest rates on Electric Two Wheelers and Electric Three Wheelers is expected to come down to 10% to 12%. According to experts there is afaster adoption of EVs amid a rise in fuel prices and consumers also choosing cleaner and greener mobility.
- The foreign institutional investors (FII) continued selling Indian equities and sold shares worth Rs 3,580 mn. Domestic institutional investors (DIIs) became buyers this week and bought equities worth Rs 3,060 mn.
Things to watch out for next week
- Results season continues in India with companies such as Britannia, MRF, M&M, ZEE, Coal India, and ONGC are set to announce earnings.
- Trade data and more 3Q company earnings will show whether supply chain glitches are decreased or not.
- Investors’ optimism might be seen next week on the back of the government’s move to cut Excise duty on Petrol and Diesel.
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