Weekly Wrap-Up: October Week 2, 2023

Weekly Wrap Up

A frustrating week for traders as the Nifty 50 bounced from one end to the other throughout trading sessions. Where many feared a down move with today's gap down, markets made a steady recovery through the week's close. The bullish sentiment carries forward this week.

• The Nifty50 gained slightly with 0.39% for the week; Nifty 500 followed suit with a return of 0.47%.
• Top Nifty losers: Axis Bank, Infosys, Adani Enterprises, SBI, and Wipro; gainers include Tata Motors, IndusInd Bank, HCL Technologies, Tata Consumer Products, and Nestle India.
• Nifty Auto and realty sectors show gains, while Nifty PSU Bank and IT sectors decline.
• The market was affected by weak global cues and a sharp rise in crude oil prices; IT and banking stocks contributed to the downfall.
• Concerns arise from global economic uncertainty, the Israel-Palestine conflict, persistent FII selling, and rising US dollar and treasury yields.
• India's merchandise trade deficit eases to a 5-month low; exports fall by 2.6%, and imports decline by 15% annually.
• Global shares slip on U.S. inflation concerns, impacting Asian and European markets.

Leaders & Laggards:

‌‌In the second week of October, 'Alpha Ally' and 'High Five' were the top performers with 4.34% & 3.72% returns, respectively.

On the other hand, 'Sector Superstars' and 'Nightcrawler' were two of the underperformers, with negative 2.24% and 0.66% returns in the same period.

• ITI, or ITI Limited, is a public sector company in India that operates in the telecommunications equipment manufacturing industry. It was among the top performers, with 37.72% returns as a part of the 'Alpha Ally' model. ‌‌
• BSE, or Bombay Stock Exchange Limited, is India's oldest and one of the largest stock exchanges. It was next in the list of top performers, with a 14.83% return, as a part of the 'Alpha Ally' model.

• IOB, or Indian Overseas Bank (IOB), is a major public sector bank in India headquartered in Chennai, Tamil Nadu and was among the underperformers, with a negative 8.62%, as a part of the 'Buy High Sell Higher' model.
• AAVAS, or Aavas Financiers Limited, commonly known as AAVAS, is a housing finance company based in Jaipur. It primarily focuses on providing housing loans to lower and middle-income self-employed individuals in semi-urban and rural areas. The stock is second in the list with a negative 7.39% return as a part of the 'Buy High Sell Higher' model.

Reads On The Internet:

Banking sector earnings to highlight strength of economy as global tech rout seen worsening

‌‌‌‌Indian banking sector's Q3 earnings reflect the economy's strength, despite global tech decline. Credit growth persists, but margins are pressured due to high-interest rates and liquidity constraints. HDFC Bank's merger impacts Q2 results significantly. IT industry faces ongoing pressure. Consumer goods grapple with weak rural demand and inflation.

14 non-banking finance companies surrender their licences to RBI‌‌

Reserve Bank of India (RBI) announced that 14 non-banking finance companies (NBFCs) surrendered their registration certificates. Ten NBFCs exited the business voluntarily, while four surrendered due to various reasons such as amalgamation, merger, dissolution, or voluntary strike-off. Additionally, the RBI cancelled the license of one housing finance company, Ind Bank Housing.

‌‌Finance Minister Nirmala Sitharaman meets Brazil’s Minister of Economy

Finance Minister Nirmala Sitharaman met Brazil’s Minister of Economy Fernando Haddad, at the 4th G20 Finance Ministers and IMF-WB annual meetings. Discussions focused on strengthening Multilateral Development Banks, climate finance, crypto assets, financial inclusion, global debt, and BRICS expansion. Brazil will host the G20 meeting in 2024, succeeding India.

India expected to become $30-trillion economy by 2050: Atanu Chakraborty‌‌

HDFC Bank chairman Atanu Chakraborty predicts India could become a $30-trillion economy by 2050, driven by robust consumption and exports. International institutions project India's growth around 6.3% this year, potentially achieving a per capita income of $21,000 in the stated timeframe.

Israel-Palestine War: Indian stocks that may be affected by Middle East crisis

The Israeli-Hamas conflict has shifted focus to Indian companies with operations or exposure to Israel. Sun Pharma's shares may be affected due to its Israeli subsidiary Taro Pharmaceuticals. Other pharma majors like Dr. Reddy’s, Lupin, and Torrent Pharma are also exposed due to exports. Adani Ports, operating Haifa port in Israel, faced a nearly 5% stock fall. Tata Consultancy Services (TCS) with significant projects in Israel is monitoring employee safety and projects.‌‌

As we conclude this week's report, it's worth noting that 9 days of Sharad Navratri will start from 15th Oct 2023. It's a time of spiritual reflection and fervour, symbolizing the triumph of good over evil. Wishing everyone a blessed and joyful Navratri!

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