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WEEKLY MARKET REPORT
Indian market ended higher for the third straight week with benchmarks posting fresh all-time highs with extended buying from FIIs. However, the market witnessed high volatility amid the weak progress of monsoon and mixed global markets.
In this week, BSE Sensex added 217.13 points or 0.28 percent to end at 77,209.90, while Nifty50 index rose 35.5 points or 0.15 percent to close at 23,501.10. On June 19, BSE Sensex touched a fresh record high of 77,851.63, while Nifty50 hit a record high of 23,667.10 on June 21.
The BSE Small-cap index rose 1.5 percent note while the BSE Large-cap and BSE Mid-cap Index ended on a flat note.
In terms of market value, HDFC Bank added the most, followed by ICICI Bank, Infosys, and Axis Bank. On the other hand, Reliance Industries, Larsen & Toubro, and Maruti Suzuki India lost most of their market cap.
Among sectors, the Nifty Bank index gained more than 3 percent, the Nifty Information Technology index up nearly 2 percent, and the Nifty Metal index up nearly 1 percent. However, the Nifty Auto index slipped 2.5 percent, the Nifty FMCG index shed 2 percent, Nifty Oil & Gas and Pharma indices were down 2 percent each.
During the week, Foreign institutional investors (FIIs) bought equities worth Rs 2,030.83 crore, while Domestic Institutional Investors (DII) also bought equities worth Rs 6293.38 crore.
The Indian rupee ended flat at 83.54 on June 21 against its June 14 closing at 83.56.
ECONOMY
Share of fishing doubles in India’s agri output while cereals decline: MoSPI
The share of fishing and aquaculture rose to its highest level in India’s agriculture output, doubling over the last decade, a report released by the Union Ministry of Statistics and Programme Implementation (MoSPI) showed on June 21. While the share of crops has declined, there have been changes within crop categories as well, with fruits accounting for a larger share than cereals.
While crops and livestock still account for nearly 85 percent of India’s total agriculture output, the share of fishing and aquaculture rose to 6.9 percent in FY23 compared with 4.2 percent in FY12, as per the Statistical Report on Value of Output from Agriculture and Allied Sectors 2024.
India formalized Rs 26 lakh crore of the economy in seven years: SBI Research
India has formalized Rs 26 lakh crore of the economy in seven years, State Bank of India researchers noted in a report released on June 21.
Estimating the share of the informal economy from the recently released Annual Survey of Unincorporated Sector Enterprises, SBI researchers found that the share of the informal economy had fallen to 23.7% in FY23 from 25.9% in FY16.
Private sector activity regains momentum, rises to 60.9 in June
Private sector activity regained some momentum, rising to 60.9 in June from a five-month low of 60.5 in May, as the manufacturing sector accelerated, according to preliminary results of a private survey released on Friday.
“New orders gained growth momentum for both sectors, with a faster upturn among manufacturers,” said Maitreyi Das, Global Economist, HSBC.
GLOBAL MARKETS
S&P, and Nasdaq end lower as Nvidia drags the tech sector for the second day
The S&P 500 and Nasdaq closed marginally lower on Friday, weighed down by a decline in Nvidia shares for a second straight day, which dragged down the technology sector.
Technology was the biggest loser among the 11 major S&P 500 sectors, down 0.84%, weighed by Nvidia, while communication services led the gain.
The Dow Jones Industrial Average rose 15.57 points, or 0.04%, to 39,150.33, the S&P 500 lost 8.55 points, or 0.16%, to 5,464.62 and the Nasdaq Composite lost 32.23 points, or 0.18%, to 17,689.36.
Asian shares end the week with a fall, yen struggles
Asian shares are ending the week with a downfall after a rally to 26-month highs earlier this week drew profit-taking.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6% on Friday, dragged lower by a pull-back in technology shares, tracking a mixed session on Wall Street overnight. Japan’s Nikkei rose 0.1% and the yen eased another 0.1% to trade at 159.01.
Oil prices slip as rate hike worries come into focus
Crude oil futures slid in early trade on Friday on the prospect of higher-for-longer interest rates in Asia and the United States, while falling U.S. oil inventories kept prices from moving lower.
Brent futures for August delivery dipped 11 cents to $85.60 a barrel by 0013 GMT, while U.S. crude was down 9 cents to $81.20 per barrel.
STOCKS TODAY
RailTel Corporation: Shares of RailTel Corporation of India rallied over 12 percent after it bagged a work order from South Central Railway worth Rs 20.22 crore. So far this year, shares of RailTel raced over 44 percent, beating the benchmark Nifty 50 index that rose by 8 percent during the same period.
TCS: Shares of Tata Consultancy Services (TCS) rose over 2 percent after the IT giant informed that it has signed a deal with Xerox to transform the latter’s IT technology using cloud and generative AI. It has expanded its strategic partnership with Xerox with an “end-to-end transformation program designed to fast track the company’s evolution to a simplified, services-led, software-enabled organization”, the IT major said in a stock exchange filing.
Bikaji Foods: Shares of Bikaji Foods International advanced 4 percent after Nuvama Institutional Equities initiated coverage with a ‘buy’ rating as it forecasts healthy long-term growth. The domestic brokerage has assigned a price target of Rs 885. This implies an upside of 23 percent from the last close of Rs 720 on the National Stock Exchange.
HDFC Bank: India’s largest private sector lender and index heavyweight, HDFC Bank, has been gaining traction on the Street ahead of its June shareholding data release, expected by the first week of July. In a note from Nuvama Alternative and Quantitative Research, analyst Abhilash Pagaria predicts that HDFC Bank’s upward momentum will continue, with an additional rise of up to 5 percent expected until the shareholding data is released.
Vodafone Idea: Shares of Vodafone Idea gained around 4 percent after a report said the telecom service provider had completed its 5G rollout obligation in all circles. The company has a 5G spectrum in 17 circles, and has completed the rollout obligation in both spectrum bands.