Week Gone by 12.07.24: Market Surge: Sixth Week of Consecutive Gains, hits All-Time High
Sumit Poddar
Founder | Chief Investment Officer| Advisory Board AIF CAT II | Smallcase Fund Manager | Startup | Investor | ex TCS, Aditya Birla | AI enthusiast
Indian major indices recorded gains for the sixth consecutive week as both Nifty and Sensex reach all time highs. This marks the longest streak of weekly gains in seven months. During the week, the Nifty 50 rose 0.7% to close at 24,502 while the Mid Cap and Small Cap index rose 0.2% and 0.3% respectively. The broader market failed to sustain its outperformance.
#FMCG with a 3.5% gain led this week driven by positive quarter updates, followed by #IT gaining 3.4% on back of ahead of expectation commentary and #CPSE up by 3.0%, while Nifty underperformers were #METALS declining by 2.6%, with #REALTY at 2.3% and #PSUBANK at 2.0%.
Economy:?
India's net direct tax collection grew by 19.5% to Rs 5.74 lakh crore in FY25, up from Rs 4.80 lakh crore in the same period of FY24, according to recent data from the income tax department. Further, India's retail inflation saw an uptick for the first time in five months as it rose to 5.08% in June which is higher than the 12 month low of 4.75% registered in the previous month.
On the global front, China's consumer inflation shrank to 0.2% year-on-year while the US CPI rose by 3%. In the US new nonfarm payroll addition was above expectations at 206,000.US CPI at 3.0% was below previous reading of 3.3% in May.
Quarterly earnings expectations: Earnings growth during the quarter are anticipated to be driven by domestic cyclicals like Banks, Auto, Real estate and retail. While Commodities and global export oriented sectors are expected to drag on earnings growth. NIFTY for the next 2 years is expected to grow at ~15% CAGR and Q1 is likely to be the slowest given the continued global softness, heat waves and elections.
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#Gainers4week - #Top3
#RVNL+27.6% Order received worth Rs. 271 crore from Central Railway?
#OIL +25.5% Share price surged after Morgan Stanley raised its price target, implying an upside of 33%
#IRFC +15.5% Overall positivity in railway stocks after announcement of expansion plans for 2500 new general passengers coaches and 10,000 additional coaches by railway minister Ashwini Vaishnav
#losers4week - #Top3
#RAYMOND -34.9% Stock went ex-demerger for its lifestyle? business
#SCHAEFFLER -12.9% Regular correction
#UNOMINDA -12.2% Regular correction
#Unlisted Equity : Transactions in NSE continue to drive unlisted markets, other unlisted companies where interest levels are high - Waree Energies, Matrix Gas, Swiggy, OYO, Vikram Solar and HDB . Get in touch for more …
#Weekahead
As the market continues to hit all time highs, profit booking may be expected. Q1FY25 Earnings, foreign flows and global market trends will set the direction for next week. Investors will have a close watch on any Union Budget related announcements. On the macro front, India’s balance of trade data and WPI for June will be released on Monday, June 15, 2024. The coming week will also see results from major companies.
Globally, China will release Q2 GDP data along with Industrial production. US retail sales data for June during the week. ECB monetary policy and US Fed chairman commentary on economy and inflation shall be closely watched.?
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