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WEEKLY MARKET REPORT
In a truncated week, the Indian benchmark indices rallied 2 percent to hit fresh milestones with Nifty surpassing 23,000 for the first time led by buying across the sectors, FII support, and mixed corporate earnings.
This week, the Nifty50 index rose 455.1 points or 2.02 percent to close at 22,957.10 after hitting a new high of 23,026.40, while BSE Sensex added 1,404.45 points or 1.90 percent to finish at 75,410.39, after touching a fresh high of 75,636.5.
Considering broader market indices, The BSE Large-cap Index surged 2 percent and the BSE Mid-cap Index rose 1 percent while the BSE Small-cap index ended on a flat note.
In terms of the market value, Reliance Industries added the most, followed by HDFC Bank, Bharti Airtel, and Larsen & Toubro. On the other hand, Sun Pharmaceutical Industries, Nestle India, and ITClost the most of their market cap.
All the sectoral indices ended on a positive note with the BSE Capital Goods index up 4.7 percent, the BSE Telecom index rose 3.4 percent, while the Metal, Power, Oil & Gas, and Realty indices added 2 percent each.
The market witnessed ease in Foreign institutional investors (FIIs) selling as they sold equities worth Rs 1165.54 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 6,977.71 crore this week.
This week, the Indian rupee gained against the US dollar. The domestic currency rose 24 paise to end at 83.09 on May 24 against its May 17 closing at 83.33.
ECONOMY
Govt may use bumper RBI dividend for faster fiscal consolidation, lower debt
The Reserve Bank of India (RBI), on May 22, said that its Central Board of Directors had approved the transfer of the highest-ever yearly surplus of Rs 2.11 lakh crore to the government for the financial year 2023-24, attributing it to higher income from its forex holding. This is against the 1.02 lakh crore budgeted by the government by way of the RBI dividend.
The government is likely to use the RBI’s bonanza dividend of Rs 2.11 lakh crore to unveil a medium-term roadmap in the upcoming union budget for faster fiscal consolidation, lower debt-to-GDP ratio, and reduced market borrowing, says, economists and experts.
India needs lower tax on recruitment services to boost jobs, says industry body
India should consider lowering the 18% tax imposed on recruitment agencies for providing outsourced staff to big companies, an industry body said on Thursday, which could help boost employment and wages of contract workers.
The Indian Staffing Federation (ISF), a body of 125 recruitment agencies that provided 1.6 million outsourced workers to companies last year, said the new government after the elections ending on June 1 should take steps to support the hiring of more salaried workers.
India May business growth robust as exports rise at record pace, PMI shows
Business activity in India expanded robustly in May, helped by the dominant services industry, according to a survey that also showed exports rising at a record pace and the sharpest job addition rate in nearly 18 years.
HSBC’s flash India Composite Purchasing Managers’ Index, compiled by S&P Global, rose slightly to 61.7 this month from April’s final reading of 61.5, marking the 34th month above the 50-level separating growth from contraction. “The composite PMI ticked up further in May, recording the third strongest reading in close to 14 years, supported by a sharp acceleration in the service sector,” noted Pranjul Bhandari, chief India economist at HSBC.
GLOBAL MARKETS
Stocks rebound to close higher but the Dow is down for the week
US stocks rebounded on Friday from sharp losses the day before on news of an improving consumer outlook on inflation, sending the Nasdaq to a fifth straight week of gains and a record closing high.
The Dow Jones Industrial Average rose 4.33 points, or 0.01%, to 39,069.59. The S&P 500 gained 36.88 points, or 0.70%, at 5,304.72 and the Nasdaq Composite advanced 184.76 points, or 1.10%, to 16,920.79.
For the week, the Dow dropped 2.34%, the S&P edged up 0.03% and the Nasdaq gained 1.41%.
Asian Markets Tumble Amid Strong US Economic Data
The strong US economic data has shifted market expectations, making it crucial for investors to monitor Federal Reserve policies closely.
Asian equities faced broad declines, with Philippine stocks falling up to 1.1% before a slight recovery, Taiwan’s benchmark slipping 0.2% despite a tech rally, and Chinese shares dropping 0.9%. South Korea’s market fell over 1%, marking its worst week in five, while Malaysian stocks retreated 0.7%.
Oil prices fall on worries of higher US interest rates
Oil prices eased for a fourth straight day on Thursday on worries that U.S. borrowing costs could be hiked again if inflation surged, a move that could hurt oil demand.
Brent crude futures fell 27 cents, or 0.3%, to $81.63 a barrel at 0004 GMT. U.S. West Texas Intermediate crude (WTI) futures were down 35 cents, or 0.5%, at $77.14. Both benchmarks fell more than 1% on Wednesday.
STOCKS TODAY
Finolex Cables: Shares surged 12 percent on the back of strong January-March quarter (Q4FY24) performance, which beat Street estimates. Consolidated net profit rose 6.3 percent year-on-year (YoY) to Rs 186 crore in Q4FY24. Revenue from operations increased by 18.3 percent YoY to Rs 1,450 crore in Q4FY24.
Bikaji Foods International: Shares surged over 3 percent after the company posted a massive 200 percent jump in net profit at Rs 116.28 crore in the quarter ended March 31, compared to Rs 38.67 crore in the year-ago period. Revenue from operations also rose 12.8 percent to Rs 520.82 crore in the March quarter, from Rs 461.69 crore in the same period last year.
Aurionpro Solutions Limited: Shares of the company were trading 5 percent higher on May 24 at Rs 2,270 apiece after the company’s subsidiary Aurionpro Transit announced a strategic collaboration with Fime to explore opportunities in transit ticketing, payments, and fare collection projects worldwide. Fime is a leading provider of consulting and testing services for payment systems.
Bayer CropScience: Bayer CropScience shares sank six percent in trade on May 24 after the chemical manufacturing player’s net profit declined 40 percent for the quarter ended March. The firm reported a 39.4 percent fall in net profit at Rs 96 crore in Q4FY24 as compared to Rs 158.5 crore in Q4FY23. The revenue sank 19.4 percent year-on-year to Rs 791.5 crore as against Rs 982.5 crore in the March quarter of 2023.
Divi’s Laboratories Ltd: Indian pharma major on May 25 reported a 67 percent rise in consolidated net profit to Rs 538 crore in the Jan-March quarter of FY24. Revenue for the quarter grew 18 percent from last year to Rs 2,303 crore. The Board also recommended a final dividend of Rs 30/- (i.e. 1,500 percent) per equity share of face value Rs 2/- each for the financial year 2023-24, subject to the approval of the members at the ensuing 34th Annual General Meeting (AGM).
Torrent Pharma: Torrent Pharmaceuticals plans to raise Rs 5,000 crore by issuing equity shares and convertible bonds through a qualified institutional placement (QIP). The drugmaker’s board approved the fundraise on May 24. The company will follow through with the QIP, after getting approval from the board members at its upcoming annual general meeting (AGM).