Week Gone by 26.04.24 : Resilient Domestic Markets- Weathering Geopolitical Tensions

The Domestic markets recorded gains in four out of five trading sessions during this week. This resilience is surprising, considering rising US bond yields, geopolitical tensions, and even heavy selling by foreign investors. At 22,420, Nifty gained 1.2% while MidCap and Small Cap index rallied close to 4.0%. The local institutions were on a buying spree, outweighing the foreign selling, keeping the markets buoyant.

Economy: India's business activity soared to a nearly 14-year high, with HSBC's PMI at 62.2, reflecting robust economic growth fueled by strong demand. The Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were revised up and provisional Direct Tax collections have not only surpassed the Budgeted Estimates by 7.4% but also exceeded the revised estimates by 0.7% . The US gross domestic product (GDP) increased at a 1.6% annualised rate in January-March 2024 which was below the market expectations. China’s central bank left its one- and five-year loan prime rates unchanged at 3.45% and 3.95%. Bank of Japan (BOJ) kept monetary policy unchanged.

#Gainers4week - #Top3??????

#TEJASNET 32.5% High Q4 profits, marking a significant turnaround after nine consecutive quarters of losses.

#AEGISCHEM 28.5% Rose along with many chemical stocks

#COCHINSHIP 23.0% Positivity on back of ship repair agreement with US Navy?

#losers4week #Top3

#ASTERDM -31.0% Stock trading ex- dividend after declaring special dividend of Rs.118 per share

#SPARC -22.6% Stock has been locked in lower circuits since it announced the results for early parkinson's? disease as there were no discernible advantage for treated patients

#GSPL -22.4% Due to unexpected decision of PNGRB reducing the transmission tariff by 47%

#Weekahead

Markets will closely watch the voter turnouts and the commentary surrounding the turnout. Financial results will continue to remain in focus in trading week ahead. Auto stocks will be closely watched as auto companies will start announcing monthly sales numbers for April starting from 1 May 2024. Weather and geopolitics are pivotal factors influencing future inflation trends, as highlighted in the RBI's March bulletin. Adverse weather or prolonged geopolitical tensions may lead to oil price surges, posing a risk to recent progress in price stability.

Overseas, the US Federal Reserve (Fed) will announce its interest rate decision after its two-day policy meeting. Globally many countries would announce inflation data and Q1 GDP advance estimates which would further provide a direction on how 2024 would pan out for the global economy and markets !?