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WEEKLY MARKET REPORT
The Indian equity market extended losses in the truncated week ended January 25
For the week, the BSE Sensex declined 1 percent or 722.98 points to end at 70,700.67, while Nifty50 finished at 21,352.6, falling 219.2 points or 1 percent.
The BSE Small-cap index shed 0.5 percent and the BSE Mid-cap Index erased the previous week’s gains and ended 1.6 percent lower. Further, The BSE Large-cap Index closed this week with a 0.9 percent fall
Among the sectors, the Nifty Media index shed 10 percent, the Nifty Realty index down 4.5 percent, the Nifty Bank index fell 2.6 percent and the Nifty PSU Bank index down 2 percent. On the other hand, the Nifty Pharma index is up 1.7 percent.
During the week, Foreign institutional investors (FIIs) sold equities worth Rs 12,194.38 crore, while Domestic institutional investors (DIIs) provided some support as they bought equities worth Rs 9,701.96 crore. In January so far, the FIIs sold equities worth Rs 35,778.08 crore, and DIIs purchased equities worth Rs 19,976.66 crore.
The Indian Rupee shed 5 paise to end at 83.11 per US Dollar in the week ended January 25
ECONOMY
Budget 2024: MSME sector
Considering the Indian economy, the Micro, Small, and Medium Enterprise (MSME) sector is the backbone which consists of 29.15% of India’s Gross Domestic Product (GDP) till 2021-22. In the upcoming interim budget Industry experts are hoping for incentivized lending rates, credit guarantee schemes, and increased funding channels to enhance financial resilience for the MSME sector to run at its full potential.
Budget 2024: Defence sector
While the growth story around defense continues to be strong, analysts say that there is unlikely to be any significant change in allocation in the upcoming budget but the overall expectation for the defense sector remains positive. In the FY23–24 budget, the defense segment received an allocation of Rs 5.94 lakh crore, a 13 percent increase over the previous year’s Rs 5.25 lakh crore.
Budget 2024: Renewable energy
Analysts expect higher capital expenditure for renewable energy, incentives for green initiatives, and production-linked incentives for solar module manufacturing. The power segment received a significant boost in the FY24 budget, with a 58 percent increase in allocation to Rs 20,671 crore. Although the upcoming budget is an interim one, it is expected to lay the groundwork for future policy decisions.
GLOBAL MARKETS
US Indices had a weekly gain even after the S&P 500 and Nasdaq ended lower The S&P 500 ended a five-session streak of record highs on Friday, with Intel, opening new tab slumping after a weak revenue forecast, while U.S. economic data showed inflation moderating. Even as the S&P 500 and Nasdaq ended the session lower, all three major indexes recorded their third straight weekly gain.
The S&P 500 declined 0.07% to end the session at 4,890.97 points. The Nasdaq declined 0.36% to 15,455.36 points, while Dow Jones Industrial Average rose 0.16% to 38,109.43 points.
Asian stocks on fall
Shares in mainland China and Hong Kong dropped after the biggest three-day rally in Hong Kong and China equities since 2022. Japan’s Nikkei index dropped about 1.5% as Korea’s gained.
Morgan Stanley cut its targets for major China stock indexes, saying the country’s challenges with debt, demographics, and deflation are among hurdles to further equity gains.
BOJ board members deepened their discussions last month over the timing of an exit from the world’s last negative interest rate, according to minutes of the December policy meeting.
STOCKS IN NEWS
JSW: Leading conglomerate JSW Group said it has forayed into the defense sector and has acquired a majority stake in an extreme off-road vehicle company Gecko Motors Pvt Ltd.JSW Gecko, promoted by its founders led by Jaskirat Singh Nagra, has secured an order worth Rs 250 crore from the defense ministry for the manufacture and supply of 96 Specialist Mobility Vehicles branded as ATOR N1200, according to a release.
Paytm: Marshall Wace Investment Strategies Eureka Fund picked up 40.89 lakh shares at Rs 753.75 per share in Paytm’s parent, One 97 Communications, while BNP Paribas Arbitrage sold 42.15 lakh shares in the company at the same price. The transaction by Marshall Wace stood at Rs 308.23 crore.
Yes Bank: Net profit rose to Rs 231.6 crore for the quarter ended December 31 from Rs 51.5 crore a year ago. The lender’s gross non-performing assets (NPA) remained steady at 2 percent, while net NPA improved to 0.9 percent.Net interest income (NII) increased 2.3 percent from a year earlier. Operating profit rose 5.4 percent to Rs 864 crore
Glenmark Pharmaceuticals: Glenmark Specialty S A (GSSA) has signed a license agreement with Jiangsu Alphamab Biopharmaceuticals Co and 3D Medicines (Beijing) Co Ltd for KN035 (Envafolimab), used in cancer treatment. Under the agreement, Glenmark will get the license for KN035 (Envafolimab) in India, Asia Pacific, the Middle East, Africa, Russia, CIS, and Latin America, the company said in a statement.
Titagarh Rail Systems: The company has signed an agreement with Amber Group to foray into railway component and subsystem business in India and overseas. Under the pact, TRSL and Amber group, via its wholly owned subsidiary Sidwal Refrigeration Industries Pvt Ltd, will invest up to Rs 120 crore each to acquire equal control in the SPV for setting up the new railway component business as well as fresh equity investment in Firema, Italy.