Dear Reader,
Sensex, Nifty snaps 5-week winning streak:
The domestic equity benchmarks snapped their five-week winning streak on profit book emergence. Indices dropped as investors looked forward to Fed Chair Jerome Powell’s speech at Jackson Hole later stateside. Fed watchers expect him to reinforce the central bank’s goal of squashing inflation and keeping expectations about future price gains in check.
In the week ended on Friday, 19 August 2022, the Sensex dropped 812.28 points or 1.4% to settle at 58,833.87. The Nifty 50 index declined 199.55 points or 1.1% to settle at 17,558.90. The BSE Mid-Cap index rose 0.6% to settle at 25,119. The BSE Small-Cap index gained 0.9% to settle at 28,415.89.
Overseas Markets:
Despite rallying late in the week, Japanese equities finished the period lower than they began, as investors braced for a hawkish message from U.S. Federal Reserve Chair Jerome Powell at the annual Jackson Hole economic symposium on Friday. Shares in Europe fell as fears intensified that the efforts of key central banks to subdue inflation could deepen an economic downturn. US Stocks moved sharply lower—if in a week of mostly light summer trading—as investors became less optimistic that the Federal Reserve will be able to tame inflation without causing a significant economic slowdown.
Rupee:
Indian Rupee fell during the week amid rising crude prices, strong dollar and cautious domestic equity markets.
Bonds:
Bond yields fell sharply on Friday after media reports said progress had been made in talks for domestic sovereign debt to be included in the JP Morgan bond index. The Reserve Bank of India’s (RBI’s) decision to cancel a portion of Friday’s primary auction of bonds worth Rs 32,000 crore also bolstered the appetite for government debt as traders cheered the lack of fresh supply hitting the market.
Brent Crude:
Oil prices rose as markets weighed Saudi Arabia’s warning that OPEC+ production could cut output against the possibility of a nuclear deal that could return sanctioned Iranian oil to the market.
Precious Metals:
Yellow metal declined amid weak global cues. Gold has retreated because the US dollar has started picking up some steam and there’s also some thought that the Fed will remain in inflation-fighting mode, which will be perceived as hawkish.
Outlook:
Global cues, economic data at centrestage:
Trend in global stock markets, the movement of rupee against the dollar and crude oil prices will dictate trend on the bourses in the truncated trading week ahead. Stock markets will remain closed on Wednesday, 31 August 2022 on account of Ganesh Chaturthi. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be monitored. Progress of the monsoon will also be closely watched.
Please find the below link for our Digital Edition of Money Wise August 2022 issue.
https://www.flipsnack.com/moneymatu/mw_vol-10_is-8_aug_2022-final-1/full-view.html
LSN
9845051103
27-08-2022
lsnspeak 