Metal indices top gainers on NSE, BSE in Budget week; analyst says SBI numbers, RBI monetary policy top triggers next week

The domestic equity markets witnessed a mixed week amid tabling of Budget 2022-23 by Union Finance Minister Nirmala Sitharaman on Tuesday February 1. The benchmark Nifty50 gained almost four per cent in the first three days of the week by closing above 1 per cent for three consecutive sessions, before ending in the red in the next two trading days.  

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On Friday, the broader Nifty50 closed just above 17,500 as the indices declined 0.24% to settle at 17,516.30, while the 30-share Sensex ended with 0.24% cut at 58,644.82 amid volatility in the US markets. The volatility on the Wall Street was driven by Meta`s stock fall, which corrected 26% erasing more than $230 billion in the biggest ever single-day market value wipeout for a U.S. company on Thursday. It also pulled down founder and Chief Executive Officer Zuckerberg`s net worth to $85 billion, according to Forbes. Zuckerberg owns about 12.8% of the tech behemoth formerly known as Facebook.

Speaking of correction in the domestic market, Ajit Mishra, VP - Research, Religare Broking Ltd, said "Global markets, especially the US, have turned extremely volatile during the earnings which are impacting sentiment in our markets as well. We feel it may continue in the near future." said  

Meanwhile, Realty, Media, PSU Bank and Auto indices declined the most in a highly volatile trading session on Friday.  

For the week ended February 4, benchmarks Nifty and the Sensex gained 2.4% and 2.5% respectively.  

Among the indices on the NSE and BSE, metal indices (Nifty Metal and S&P BSE Metal) gained the most. BSE Metal surged 6.9% and Nifty metal ended 6.6% higher for the week ended February 4.

On the NSE, Nifty Pharma (4.6%), Nifty FMCG and Nifty IT (3.6% each) and Nifty100 Quality30 (3.4%) were other top performers for the week.  

Source: Stock Edge

S&P BSE Consumer Durables, S&P BSE Basic Materials, S&P BSE Momentum Index and S&P BSE Healthcare were the other leading indices that gained 5.3%, 4.4%, 3.8 and 3.7% on the BSE in the last five trading sessions.  

Source: Stock Edge

On major triggers going forward, Religare Broking, VP-Research, said on the domestic front, markets will first react to SBI numbers on Monday and the upcoming RBI monetary policy review will be another trigger next week.  

"Their commentary on inflation and economic growth will be key factors to watch amid the hawkish stance from the US Fed. In our opinion, while the benchmark might consolidate further, volatility on the broader front would be hard to handle. We thus recommend maintaining a cautious stance and keeping a check on leveraged positions," he added.