Weekly Stock Market Roundup: RBI Holds Rates Steady, India’s Economic Pulse, and More

The Indian stock market witnessed a mixed week as various economic indicators and global developments shaped investor sentiment. Here’s a rundown of the key highlights from the week in the world of finance:

RBI Keeps Policy Rates Unchanged

The Reserve Bank of India (RBI) made a significant announcement after the Monetary Policy Committee (MPC) meeting, deciding to maintain the policy rates at 6.50%. This move aims to provide stability to the Indian economy in the face of changing global dynamics.

Global Trade Outlook Faces Challenges

The World Trade Organization (WTO) lowered its global goods trade forecast due to the ongoing economic slowdown in international trade. This adjustment highlights the challenges that international commerce is currently facing.

USA’s Trade Deficit Narrows

In August, the United States experienced a remarkable development in its trade balance. The country’s trade deficit fell to a three-year low, primarily due to reduced imports of foreign goods and an increase in exports. This trend reflects shifting trade dynamics.

Mergers & Acquisitions Activity Declines

India-focused Mergers & Acquisitions (M&A) activity declined to a three-year low, amounting to $65.6 billion in the first nine months of 2023. This represents a significant 56.6% drop compared to the previous year, as reported by Refinitiv.

5G Adoption on the Rise

Over three crore Indians are expected to transition to 5G smartphones in 2023, according to Ericsson. This technological shift underscores the growing demand for advanced mobile connectivity in India.

Surge in Coal Production

India’s coal production recorded a substantial year-on-year increase of 15.81% in September, reaching 67.21 million tonnes. This boost in coal production is significant for various sectors of the economy.

Manufacturing Sector Activity

India’s manufacturing sector activity, measured by the Purchasing Managers’ Index (PMI), stood at 57.5 in September, slightly down from 58.6 in August. Despite the minor dip, the sector remains robust.

India’s Growing Role in Global Oil Demand

The International Energy Agency (IEA) predicts that India is on track to surpass China as the main source of global oil demand growth by 2027. This highlights India’s increasing influence in the global energy landscape.

Extension of Rs 2,000 Note Deposit Deadline

RBI has extended the deadline for depositing Rs 2,000 notes until October 7, providing relief to those who still possess these currency notes.

Improvement in Unemployment Rate

India’s unemployment rate showed signs of improvement, standing at 7.09% in September, down from 8.10% in August, according to the Centre for Monitoring Indian Economy.

India’s Mobile Download Speed Soars

With the launch of 5G services, India’s mobile download speed surged, propelling it up 72 ranks to the 47th position in the Speedtest Global Index by Ookla. This indicates the positive impact of advanced mobile connectivity on internet speeds.

SEBI Extends Market Rumor Verification Deadline

The Securities and Exchange Board of India (SEBI) has extended the deadline for market rumor verification by four months, moving it to February 1, 2024. This rule aims to enhance transparency as listed companies will be required to address rumors circulating in media reports.

Record High Auto Sales

Auto sales in India reached a record high in September, with car sales rising by 2.4% year-on-year, totaling 3.61 lakh units. This boost in sales is a positive sign for the automobile industry.

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Stock Market Performance for the Week

The stock market experienced a week of mixed performance:

• Monday: Holiday
• Tuesday: 19,529 points (-0.56%)
• Wednesday: 19,436 points (-0.47%)
• Thursday: 19,546 points (+0.56%)
• Friday: 19,654 points (+0.55%)

Stock Market Comparison to Previous Week

Compared to the previous week’s end:

• SENSEX 🇮🇳: 65,995.63 points (+0.25%)
• NIFTY 🇮🇳: 19,653.50 points (+0.08%)
• GOLD 🥇: Rs 56,475 (-2.72%)
• SILVER 🥈: Rs 66,844 (-7.20%)
• DOW JONES 🇺🇸: 33,407.58 points (-0.30%)
• NASDAQ 🇺🇸: 13,431.34 points (+1.60%)

As we wrap up this week’s financial news, it’s evident that India’s economic landscape continues to evolve amid global shifts and technological advancements. Investors will be closely monitoring these developments in the coming weeks.