Last week, Sensex & Nifty experienced a robust resurgence. The global stock markets, particularly in the US, saw a notable uptick, primarily due to a significant drop in UST levels to 4.5%. The Dow Jones Industrial Average in the US recorded a remarkable 5.07% surge during the week, managing to recoup the losses incurred in the preceding 2 weeks. Globally service PMI levels recorded lower than previous reading indicating contraction in the sector amid price pressures and subdued demand.
Domestic FIIs/FPIs outflow in the month of October 2023 stood 2nd highest in CY23 recorded at Rs. 245 billion, the trend continues as of 5th November 2023 outflows recorded at Rs. 34 billion.
In the upcoming week, investors will closely Fed officials speeches and China’s inflation data. On domestic markets, all eyes will be on ongoing earnings season.
Equity Market Summary:
- On Friday, Wall Street closed higher as the non-farm payroll &wage data came in lower than market expectation, reinforcing bets the Fed is done with rate hikes.
- US economy added 150,000 jobs in October 2023, about half of a downwardly revised 297,000 in September 2023, and below market forecasts of 180,000.
- European stocks closed higher on Friday, extending the sharp gains from earlier in the week as softer-than-expected labor data from the US.
- Bank of England maintained its benchmark interest rate at a 15-year high of 5.25% for the 2nd consecutive time during its November 2023 policy-meeting, as policymakers evaluate recent signs of an economic slowdown in the UK.
- US Services PMI fell to 51.8 levels in October 2023, the lowest in 5 months, and below forecasts of 53 levels.
- China General Service PMI rose slightly to 50.4 levels in October 2023 from September's 9-month low of 50.2 levels.
