Indian stock markets recorded their best weekly performance during the trading session till Friday. The week was particularly good with new purchases of banking and IT stocks as well as the return of foreign investments to Indian markets. However, Indian stocks have climbed for six consecutive sessions. The domestic stock market closed at its highest level in seven weeks, marking its best week since February 2021. Because of this, Sensex and Nifty are up around 3-4% on a cumulative basis.

Foreign portfolio investors (REITs) have sold stocks in Indian markets over the past nine to ten months for a variety of reasons, including tighter monetary policy in major economies and rising dollar and state bond yields. -United. Data from NSDL (National Securities Depository Limited) shows that they have withdrawn Rs 226,420 crore so far in 2022.

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Sumeet Bagdia, executive director of Choice Broking, said the Indian market saw a one-sided rally over the week, with the bulls having full control over the bears. The market shrugged off negative sentiment last week as the ECB (European Central Bank) raised rates by 50 basis points.

Be aware that next week, financial markets will react to the outcome of the US Fed’s monetary policy meeting, apart from the first quarter results of companies in India.

Bagdia said the Sensex closed with a gain of 2311 points or 4.30% at 56072.2 last week, while the Nifty closed at 16719.45 with a gain of 670 points or 4.18% on a weekly basis. While Bank Nifty closed strong at the 36738.95 level with a gain of 5.93% in one week.

IndusInd Bank, UltraTech Cement, Axis Bank, Grasim Industries and Hindalco Industries were the week’s top gainers, while Dr. Reddy’s Labs, HDFC Life Insurance, NTPC and Sun Pharma Industries were among the top losers. Good buying by foreign investors after a long period has changed the short-term positive sentiment.

Apoorva Sheth, head of market outlook, Fed Samco Securities, said the coming week will be full of activity. The FOMC meeting and press conference will take center stage, while the rate hike is expected to be aggressive.

Decline in Indian foreign exchange reserves due to the depreciation of the rupee

The Indian rupee slipped below the psychologically important 80 level against the US dollar for the first time this week, even as rising crude oil prices amid tight global supply boosted demand for the US currency. . However, the continued depreciation of the rupee is a matter of concern for investors. At the same time, India’s foreign exchange reserves, in the six months from January 2022, have shrunk by more than US$47-48 billion. The country’s foreign exchange reserves fell by $7.541 billion to $572.712 billion in the week ending July 15, the lowest level in 20 months.

All eyes are on the Fed’s statement and policy next week, said Jatin Trivedi, VP Research Analyst at LKP Securities. The Rupee’s range can be seen between 79.75 and 80.20 for other signals and direction.

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