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WEEKLY MARKET REPORT
Indian markets gained further ground in the week ended June 30 with benchmarks hitting lifetime highs mainly led by extended buying from FIIs, mixed global markets despite potential rate cuts in the future by the US Fed, steady progress of monsoon, and RBI governor confidence about 7.2 percent growth in the current financial year.
This week, BSE Sensex gained 1,822.83 points or 2.36 percent to finish at 79,032.73, while the Nifty50 index added 509.5 points or 2.16 percent to end at 24,010.60. On June 28, BSE Sensex and Nifty50 touched record highs of 79,671.58 and 24,174, respectively. In June 2024, both the benchmarks surged 6.5 percent each.
Considering Broader market indices, the BSE Large-cap Index rose 2 percent while the BSE Mid-cap Index rose 0.4 percent and the BSE Small-cap index gained 0.4 percent.
In terms of the market value, Reliance Industries added the most, followed by Tata Consultancy Services, ICICI Bank, and UltraTech Cement. On the other hand, Tata Steel, Maruti Suzuki India, and IndusInd Bank lost most of their market cap.
Among sectors, the Nifty Energy index rose 3.3 percent, the Nifty Oil & Gas index added 3 percent, Nifty Information Technology index was up 2.7 percent. However, the Nifty Realty index shed 2.4 percent, the Nifty Media index slipped 2.3 percent, Nifty Metal index declined 1.7 percent.
Foreign institutional investors (FIIs) extended their buying this week, as they bought equities worth Rs 4622.19 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 7,186.13 crore.
The Indian rupee gained against the US dollar as it ended higher by 16 paise at 83.38 on June 28 against its June 21 closing at 83.54.
ECONOMY
Government processing to finalize the policy to offer PCI coal to steelmakers to reduce imports
PCI (pulverized coal injection) coal is a type of metallurgical coal, which is used in the steel-making process as auxiliary fuel for partial replacement of coke. It helps steel plants increase efficiency and reduce carbon emissions.
At present, most of the steel makers in the country import PCI coal, and its demand is expected to go up to anywhere between 20-30 million tonnes by 2030.
With this policy, steel-makers would be able to blend with the imported coking coal and reduce imports.
FATF recognizes India’s efforts in mitigating money laundering, terror financing
The Financial Action Task Force (FATF) in its mutual evaluation 2023-24 has recognized India for its efforts in mitigating the risks arising from money laundering and terror financing, including from corruption, which will lead to greater access to global financing and boost investor confidence, the Finance Ministry said on June 28.
India’s performance on the FATF Mutual Evaluation accrues significant advantages to our growing economy, as it demonstrates the overall stability and integrity of the financial system, said the ministry.
The budget may retain focus on rapid infra growth with higher capex for the roads sector
The government is poised to retain its focus on rapid infrastructure development this fiscal, with plans to potentially increase capital expenditure allocations for the Ministry of Road Transport and Highways (MoRTH) in the upcoming budget for FY25.
Private investments in road construction projects in FY24 reached Rs 34,805 crore and are projected to nearly double in FY25, up from Rs 20,000 crore in FY23.
GLOBAL MARKETS
Stocks dip as investors digest inflation data; dollar dips
Global stock indexes edged lower on Friday, reversing early gains, while Treasury yields rose and the U.S. dollar declined as investors absorbed data that showed U.S. monthly inflation was unchanged in May.
The Dow Jones Industrial Average fell 45.20 points, or 0.12%, to 39,118.86, the S&P 500 lost 22.39 points, or 0.41%, to 5,460.48 and the Nasdaq Composite lost 126.08 points, or 0.71%, to 17,732.60.
Asia shares eyes five-month winning streak
Asian stocks were headed for a fifth straight month of gains on Friday, bolstered by the growing view that cooling inflation in the United States would allow the Federal Reserve to ease rates later this year.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.06% early in the Asian session and was on track to gain some 3.2% for the month, its best performance since February. Japan’s Nikkei jumped 0.78%, reversing some of its losses from the previous session.
Oil prices edge higher as supply risks mount
Oil prices rose in early Asian trading hours on Friday, setting up a third straight weekly jump, as concerns about supply problems from escalating geopolitical tensions and weather-related disruptions offset signs of weak demand.
Brent crude futures for August settlement, which expire on Friday, rose 15 cents, or 0.2% to $86.54 a barrel by 0020 GMT. The Brent contract for September was also up 0.2% at $85.44 a barrel.
STOCKS IN NEWS
ICICI Bank: ICICI Bank has surpassed the $100-billion valuation mark for the first time, becoming the 15th largest lending entity globally, and is now within striking distance of Citibank and China Merchant Bank.
Godrej Properties: Shares of Godrej Properties surged after it reported highest-ever pre-sales of Rs 22,500 crore in FY24.With this, it has now become the largest developer in terms of bookings. Godrej Properties pre-sales rose by 84 percent year-on-year (YoY) in FY24, 61 percent higher than its guidance.
Reliance Industries: The company’s market value has surpassed Rs 21 lakh crore following a more than 20 percent stock surge this year, becoming the first Indian company to reach this milestone.
RBL Bank: Shares of RBL Bank jumped around 3 percent on June 28 after the bank’s board approved fundraising of up to Rs 6,500 crore. RBL Bank will raise Rs 3,500 crore through qualified institutional placement (QIP) and Rs 3,000 crore through the issue of debt securities via private placement, the lender informed in an exchange filing.