From Record Highs to a Flat Close – What’s Happening on Dalal Street? | Weekly Update March 9th

Hello Readers!??

Hope your week hasn’t been too bumpy on the financial road.? Dalal Street saw some fireworks this week, with record highs followed by a cool-down. Curious to know what caused this market tango? Stay tuned as we unpack the week’s excitement in detail, right after some quick market highlights!?

?? Weekly Update?

The Indian equities had quite a wild ride this week, making record highs but also correcting sharply to finally close on a flat note – leaving investors perplexed! However, they still managed to continue their winning streak, closing the week marginally higher. Both the Sensex and Nifty ended slightly positively, with the Sensex gaining 0.04% to settle at 74,119.39 and Nifty ending 0.09% higher at 22,493.55. Broader markets outperformed benchmark indices, with the S&P BSE Midcap and Smallcap indices rising 0.39% and 0.70% respectively.?

Winners and Losers: Among the Nifty stocks, Bajaj Auto surged 12.23%, turning top gainer of the week, on positive investor sentiment and news of a potential collaboration with a European manufacturer. Tata Steel (11.6%) and Tata Motors (9.31%) also climbed, benefiting from rising global steel prices and anticipated growth in the Indian electric vehicle market, respectively. Bharti Airtel (7.18%) and HDFC Life Insurance (6.65%) continued their upward trends, fueled by strong subscriber growth and increased demand for life insurance products. Among the losers, LTI Mindtree (-3.58%) and Infosys (-3.47%) faced profit booking after recent strong performances, while concerns over a global economic slowdown weighed on Infosys specifically. SBI Life Insurance (-3.09%) experienced selling pressure alongside other insurance companies. UltraTech Cement (2.32%) declined as investors awaited further clarity on upcoming infrastructure projects, and Adani Enterprises (-1.95%) also saw profit booking after its recent price surge.?

Sector spotlight: While the market saw positive movement, individual sectors displayed mixed performance. Nifty Metal (5.67%), Nifty Energy (3.77%), Nifty Auto (3.5%) and Bank Nifty (3.72%) ended with gains while Nifty Media (-3%), Nifty IT (-1.64%) and Nifty India Digital (-0.81%) witnessed a decline during the week. ?

FPI trend: FPIs action upticked in March as they shopped a total of ?11,823 crore worth of Indian equities in March and the total inflow stands at ?15,559 crore as of March 7, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. FPIs infusion of ?3,316 crore in debt markets so far this month, extended the positive momentum in bonds picked up in 2023.?

Rupee Report: The Indian rupee strengthened against the US dollar for the week, closing 4 paise higher at ?82.79. This marks a positive sign for Indian imports and potentially encourages foreign investment. The rupee’s appreciation against the US dollar is a positive sign for the Indian economy, potentially leading to lower import costs and increased foreign investment.?

Gold surges: Gold prices continued their record-breaking rally, rising 0.4% to reach $2,156.70 per ounce. This unexpected surge is attributed to weak US economic data and uncertainty surrounding future interest rate hikes, making gold a more attractive safe-haven asset.?

Global Gossip: Major stock markets around the world ended the week with mixed results, reflecting some ongoing investor uncertainty. While European and US markets closed lower, weighed down by concerns about rising interest rates and slowing economic growth, Asian markets managed to eke out some gains. Dow Jones closed the week at 38,722.69, down –68.66 pts (-0.18%), Nasdaq closed down –188.26 pts (-1.16%) at 16,085.11.?

Among the key European markets, FTSE 100 closed down –32.72 (-0.43%) at 7,659.74, DAX closed down -28.34pts (-0.16%) at 17,814.51 and CAC 40 closed at 8,028.01 up 11.79pts (0.15%).?On Asian side, the Shanghai Composite Index rose 0.63%, and the Nikkei 225 in Japan climbed 1.2%. ?

Bottom Line Indian markets maintained their positive momentum this week, extending their winning streak. While concerns remain regarding global economic conditions and potential interest rate hikes, positive developments like the strengthening rupee and strong performance in certain sectors offer some optimism for the upcoming week.?

It will be an action-packed week for the IPO market, with 7 new issues that will hit Dalal Street next week and 8 new stock listings. ?

Going ahead, US Presidential elections can sway the American markets, and one should keep a watch there.?It’s important for investors to stay informed about both domestic and global market trends to make informed investment decisions.?

?? Quick Bites?

• Inflows in equity mutual fund increased 23% in February to ?26,866 crore, smallcaps record decline, according to the data released by AMFI. Sectoral/thematic funds continued to gain traction in February witnessing an increase in AUM by a whopping 134%.??
• ?? PM Modi to inaugurate India’s first under-river metro tunnel in Kolkata.?
• ?? Indian bonds to be phased into Bloomberg Emerging Market Local Currency Index from Jan 31, 2025.?
• ?? Singapore competition regulator greenlights Air India and Vistara merger?
• ?? India plans to manufacture 1,000+ new-generation Amrit Bharat trains in upcoming years announced Railway Minister Ashwini Vaishnaw.?
• ??? Delhi–Ghaziabad–Meerut Rapid Rail Transit System to open 17-kilometre section.?
• ?? Vehicle registrations increased by 13% to over 20 lakh units in Feb 2024 (FADA)?
• ? India’s fuel consumption rose 5.7% year-on-year in February.?
• ?? DGCA grants Air Operator’s Certificate to ‘FLY91’ airline, anticipating imminent operations.?
• ?? Employees’ State Insurance Corporation has approved ?1,128.21 cr for the construction of 7 ESI Hospitals in Karnataka, UP, Madhya Pradesh, and Odisha?
• ?? Indian employees to receive approximately 9.6% average salary increase in 2024: EY report.?

??? Stocks in News?

• ?? BHEL secures ?9,500 cr order from NTPC for Uttar Pradesh thermal project.?
• ?? Tata Motors to demerge into separate commercial vehicle and passenger vehicle companies. ?
• ?? Infosys extends partnership with ‘ATP Tour’ to 2026 for digital innovation in tennis.?
• ?? Vodafone-Idea (Vi) installs network infrastructure for Kolkata’s East-West Metro corridor.?
• ? Mahanagar Gas cuts CNG price to ?73.50/kg in Mumbai. Meanwhile, Indraprastha Gas reduced the prices of CNG by ? 2.5 in Delhi-NCR?
• ?? Blue Star introduces new range of air conditioners.?
• ?? Power Grid to raise ?1,200 cr via private placement bonds.?
• ?? Adani Ports handles 35.4 MMT of cargo in Feb, up 33% YoY.?
• ?? Swan Energy’s Swan LNG Pvt prepay ?2,206 cr loans.?
• ?? SEBI bars JM Financial from acting as lead manager to new public debt issues?
• ?? Rail Vikas Nigam Ltd bags multiple orders from Himachal Pradesh State Electricity Board Ltd and from Madhya Pradesh PoorvKshetra Vidyut Vitaran Company Ltd, Jabalpur.?
• Gujarat Gas inks MoU with BPCL for offering liquid fuels, automotive lubricants and expanding CNG infrastructure.?

?? Sustainability Corner?

• ?? Adani Green initiates 448.95 MW solar projects in Gujarat’s Khavda.??
• ? SJVN subsidiary secures 1,352 MW of solar power projects that will require investment of ~?7,436 crores.?
• ? India’s green bond market is a mere 3.8% of the corporate bond market, despite a recent ?16,000 crore push from the RBI.?
• ?? BYD aims for 90% EV market share in India by year-end, launching BYD Seal.?
• ?? NHPC to finish 1,200 MW solar project in Uttar Pradesh within 2 years.?
• ?? Reliance’s Jio-bp collaborates with ‘House of Hiranandani’ for EV charging infra in 4 cities.?
• ? Ola Electric published 205 patents in the EV-related tech space in FY2023. TVS was 2nd with 156 patents, followed by Suzuki, Honda, and BYD, as per data from Intellectual Property India.?
• ?? Jindal Stainless’s new green hydrogen project was inaugurated by Union Minister Jyotiraditya M Scindia. The facility has been set up by JSL in collaboration with Hygenco & aims to reduce carbon emissions by around 2,700 metric tonnes per annum and 54,000 tonnes of CO2 emission over 20 years.?
• ? Karnataka government imposes 10% lifetime tax on high-end electric vehicles, anticipates surge in EV numbers?

?? IPO Corner ?

• 7 new IPOs will open next week including Popular Vehicles & Services (to raise ?602 crore) and Krystal Integrated (to raise ?175 crore) in the mainboard segment.?
• Shares of Platinum Industries and Exicom Tele-Systems?got listed at a premium of 31% and 86% over issue price of ?171 and ?142 respectively ?
• RK Swamy’s IPO, subscribed 25.94 times. It is set to list on March 12th.?
• JG Chemicals IPO closed on March 6th and was subscribed 6.39x with a price band ?210-?221. It is set to be listed on March 13th.?
• Sona Machinery IPO closed on March 6th and was subscribed 2.46x with a price band ?350-?370. Its listing date is to be announced.?
• Gopal Snacks IPO closed on March 7th and was subscribed 16.23x with an estimated price band of ?381-?401. It is set to be listed on March 14th.?

Wild Week on Dalal Street: Record Highs Followed by a Flat Close – What’s Happening??

This past week on Dalal Street was quite a spectacle. The week kicked off with a bang, with the Sensex reaching an all-time high of 63,587 points on Monday, March 4th, 2024. This marked a significant milestone, and the news was splashed across financial headlines all over the country.?

But hold on, the excitement didn’t last long. The market witnessed a sharp correction throughout the week, with the Sensex closing flat at 62,301 points on Friday, March 8th, 2024. That’s a cool 1,286 points shed – a significant drop considering the initial highs.?

Now, this sudden change in direction has many investors scratching their heads. What caused this week’s volatility? Well, a few factors contributed to the swing:?

1. Profit Booking: After witnessing consistent gains for several weeks, many investors engaged in “profit booking.” This means they decided to sell their shares to lock in the gains they made through the recent rise. This selling pressure contributed to the decline in the market.
2. Global Cues: The Indian market was also influenced by global trends as corrections were seen in the US and Europe markets. This cautious sentiment spilled over to the Indian market, further fueling the fall.
3. Rising Crude Oil Prices: The ongoing conflict in Eastern Europe continued to push crude oil prices higher. This poses a risk for India, which is a major importer of oil. Rising oil prices can add to inflationary pressures and dampen investor confidence, impacting the stock market.
4. Upcoming FOMC Meeting: The next meeting of the US Federal Open Market Committee (FOMC) is scheduled for later this month. Investors are cautious about the potential for the US Fed to raise interest rates, which could impact global liquidity and potentially affect the Indian market as well.

So, what does this mean for you, the Indian investor? It’s crucial to remember that market volatility is a normal phenomenon. While this week’s correction may seem concerning, it doesn’t necessarily signify a long-term trend.?

Here are some key takeaways:?

• Stay informed: Keep yourself updated on both domestic and global economic and political developments as they can impact the market.?
• Invest with a long-term perspective: Don’t panic and make impulsive decisions based on short-term fluctuations.?
• Diversify your portfolio: Spread your investments across different asset classes to mitigate risk.?
• Seek professional advice: If you’re unsure about making investment decisions, consult a qualified financial advisor.?

Remember, the stock market is not a get-rich-quick scheme. It requires patience, discipline, and a well-defined investment strategy. By staying informed and making informed decisions, you can navigate these volatile times and achieve your financial goals.?

Upcoming key financial events for the week:?

• Key Corporate Actions: SBI Life Insurance Company, IIFL Securities, and Kirloskar Ferrous Industries will trade ex-dividend, while Waaree Renewable Technologies will trade ex-split this week
• 01-Mar-24?– INR FX Reserves, USD, USD Revised UoM Consumer Sentiment??– USD ISM Manufacturing PMI?
• 05-Mar-24?– USD ISM Services PMI?
• 07-Mar-24?– USD Unemployment Claims, EUR Main Refinancing Rate, EUR Monetary Policy Statement, USD Fed Chair Powell Testifies?
• 08-Mar-24?– USD Average Hourly Earnings m/m, USD Non-Farm Payrolls, USD Unemployment Rate, INR FX Reserves (USD), INR Bank Loan Growth/Deposit Growth?