Government Policies Boost The Indices
Frontline domestic indices Nifty and Sensex ended the fortnight on a buoyant note with healthy gains of approximately 1.51 per cent each. Both indices recorded fresh all-time highs of 17,792.95 and 59,737.32, respectively, during the fortnight. BSE Mid-Cap and Small-Cap indices were dominated by bulls and outperformed the broader markets, surging 2.72 per cent and 2.57 per cent, respectively. Foreign portfolio investors (FPIs) have continued to remain net buyers in Indian markets during the first half of September by investing a net sum of Rs16,305 crore. The overseas’ investors have invested Rs11,287 crore in equities and Rs5,018 crore in debt between September 1-17, 2021.
As per data released by the National Statistical Office (NSO), Consumer Price Index (CPI) for August 2021 came in at a four-month low of 5.30 per cent as compared to 5.59 per cent in July 2021 led by a high base effect and subdued prices of food items. The Consumer Food Price Inflation (CFPI) for August stood at a seven-month low of 3.11 per cent versus 3.96 per cent in the previous month. As per a press release by the Ministry of Commerce and Industry, the Wholesale Price Index (WPI) rose to 11.39 per cent in August 2021, relative to 11.16 per cent in the previous month.
WPI inflation continues to remain in the double-digits for the fifth consecutive month due to the rise in prices of non-food articles, crude petroleum, natural gas, mineral oils as well as manufactured products such as basic metals, textiles, chemicals and others as compared to the corresponding month of the previous year. BSE Bankex jumped by 3.30 per cent during the fortnight and was the top gainer. The Union Cabinet in a relief package announced a moratorium of four years for the payment of the adjusted gross revenue (AGR) dues for the debt-strapped telecom companies which came as positive news for banks. BSE Auto also gained 2.67 per cent.
Foreign portfolio investors (FPIs) have continued to remain net buyers in Indian markets during the first half of September by investing a net sum of Rs16,305 crore.
The Union Cabinet has recently approved PLI (production linked incentive) scheme of Rs26,058 crore for the automotive sector to promote advanced technologies and enhance manufacturing in India over five years. Healthcare and realty indices were top losers during the fortnight and fell by 0.76 per cent each. According to a survey conducted by Federation of Indian Chambers of Commerce and Industry (FICCI), the outlook for increased manufacturing activities in the July-September quarter of the current fiscal is expected to improve significantly even as the cost of business remains a reasonable concern. Trading data shows that FIIs were net buyers to the tune of Rs4,661.19 crore while DIIs were net sellers to the tune of Rs381.81 crore during the fortnight.
