A rally on Friday helped the key indices cut sharp losses triggered by negative global cues. Global stocks dropped amid persisted worries about aggressive policy tightening by the Fed and its impact on economic growth. Market edged lower in four out of five trading sessions in the week. The Nifty settled below the 17,100 level. In the week ended on Friday, 30 September 2022, the Sensex fell 672 points or 1.16% to settle at 57,426.92. The Nifty 50 index declined 233 points or 1.34% to settle at 17,094.35. The BSE Mid-Cap index fell 1.65% to settle at 24,853.94. The BSE Small-Cap index declined 1.25% to settle at 28,452.91. Weekly Index Movement:

Equity barometers tanked on Monday, extending losses for the fourth trading session. Investors dumped equities on renewed worries over economic growth amid a high-interest rate scenario. The barometer index, the S&P BSE Sensex, dropped 953.70 points or 1.64% to 57,145.22. The Nifty 50 index tumbled 311.05 points or 1.80% to 17,016.30.

The equity market extended losses to fifth day on Tuesday, ending marginally lower after a volatile session. The barometer index, the S&P BSE Sensex, declined 37.70 points or 0.07% to 57,107.52. The Nifty 50 index lost 8.90 points or 0.05% to 17,007.40.

Indian equity market ended with steep losses on Wednesday, extending losses to the sixth trading day in a row. Global cues were weak amid persisted worries about aggressive policy tightening by the Fed and its impact on economic growth. The barometer index, the S&P BSE Sensex, declined 509.24 points or 0.89% to 56,598.28. The Nifty 50 index lost 148.80 points or 0.87% to 16,858.60.

The domestic equity benchmarks ended with minor cuts on Thursday, extending losses to the seventh trading day in a row. Trading was volatile due to monthly F&O expiry. The September 2022 F&O contracts expired on 29 September 2022. The barometer index, the S&P BSE Sensex, fell 188.32 points or 0.33% to 56409.96. The Nifty 50 index lost 40.50 points or 0.24% to 16818.10.

The key equity indices settled with robust gains on Friday, snapping a seven-day losing streak. The relief rally came after the Reserve Bank of India (RBI) raised benchmark repo rate by 50 basis points, along expected lines. Positive global cues also supported buying. The barometer index, the S&P BSE Sensex jumped 1,016.96 points or 1.80% at 57,426.92. The Nifty 50 index gained 276.25 points or 1.64% at 17,094.35.

Stocks in Spotlight:

Power Grid Corporation of India gained 4.71%. The PSU company announced that its board approved the appointment of G. Ravisankar as chief financial officer (CFO) of the company with effect from 26 September, 2022.

Axis Bank slipped 4.57%. The private lender said that it has entered into an indicative and non-binding term sheet with Go Digit Life Insurance for an acquisition of up to 9.94% stake in the life insurer. The bank will invest an amount between Rs 49.90 crore to Rs 69.90 crore, in two tranches, by subscribing to equity shares of the company, for an equity stake of up to 9.94% of the paid-up equity share capital of the company, subject to execution of definitive agreements whose terms and conditions are to be mutually agreed upon, and fulfilment of other terms and conditions.

Larsen & Toubro (L&T) shed 0.47%. The company said that the buildings & factories business of L&T Construction business has been awarded a significant contract from the State Government of Assam on an EPC basis. As per L&T's classification, the value of the significant project is 1,000 crore to 2,500 crore.

State Bank of India (SBI) dropped 3.52%. The state-run lender on Friday (23 September 2022) announced the allotment of non-convertible, unsecured Basel III compliant Tier 2 bonds Series I of Rs 4,000 crore on private placement basis.

Lupin rallied 4.8%. The drug maker said that it has received ANDA approval for its Mirabegron extended-release tablet from the US Food and Drug Administration (USFDA). The approved abbreviated new drug application (ANDA) is generic equivalent of Myrbetriq extended-release tablets of Astellas Pharma Global Development, Inc. The pharma major said that the product will be manufactured at Lupin's facility in Nagpur, India.

Britannia Industries rose 1.4%. The company on Friday said that its board has elevated Varun Berry as executive vice‐chairman and managing director with immediate effect and also appointed Rajneet Singh Kohli as executive director and chief executive officer.

Economy:

The Monetary Policy Committee (MPC) at its meeting on 30 September 2022 decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.90% with immediate effect. The decision was on the expected lines.

Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.65% and the marginal standing facility (MSF) rate and the Bank Rate to 6.15%.

The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The MPC projected that while inflation will average 6.7% in 2022-23, it will head lower in the next financial year.

Inflation is projected at 6.7% in 2022-23, with Q2 at 7.1%; Q3 at 6.5%; and Q4 at 5.8%, and risks are evenly balanced. CPI inflation for Q1:2023-24 is projected at 5%.

FY23 real GDP growth is seen at 7% from 7.2% earlier. Real GDP growth for Q2 2022-23 is projected at 6.3%; Q3 at 4.6%; and Q4 at 4.6%, and risks broadly balanced. For Q1:2023-24, it is projected at 7.2%.

The central government's fiscal deficit stood at Rs 5.42 lakh crore in April-August, accounting for 32.6% of the full-year target, data released on September 30 by the Controller General of Accounts showed.

The fiscal deficit for April-August 2021 had accounted for 31.1% of the FY22 target.

Net tax receipts rose to about Rs 7 lakh crore while total expenditure was Rs 13.90 lakh crore, the data showed.

Global Markets:

China's official factory activity data unexpectedly expanded in August, beating estimates. China's official manufacturing Purchasing Managers' Index surprisingly grew in September to 50.1. The official non-manufacturing PMI came in at 50.6 in September, down from 52.6 in August.

Japan's factory activity growth hit a 20-month low in September. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) slipped to a seasonally adjusted 51 in September from the prior month's final of 51.5.

The Bank of England said on Wednesday that it would buy as many long-dated government bonds as needed between now and October 14 to stabilise financial markets, and added that it would postpone next week's start of its gilt sale programme.

Euro zone inflation hit a new record high of 10% in September, Eurostat data showed on Friday, up from 9.1% in August and above consensus projections of 9.7%.