Benchmark indices touched record highs this week; Broader Market Indices outperformed key domestic indices

On January 12, the Sensex and Nifty touched fresh record highs of 72,720.96 and 21,928.25, respectively.

For the week, the BSE Sensex added 0.75 percent or 542.3 points to end at 72,568.45, while Nifty50 gained 183.7 points or 0.84 percent to close at 21,894.50.

The benchmark indices- the Sensex and the Nifty 50- have registered substantial double-digit growth in the last two-and-a-half months, also, the remarkable outperformance of mid and small-cap indices is noteworthy.

The BSE Small-cap index touched a fresh record high of 44,644.04 and gained 1.5 percent.

The BSE Large-cap Index touched a fresh record high of 8,431.05 and ended the week nearly a percent

The BSE Mid-cap Index rose 0.5 percent

On the sectoral front, the BSE Information Technology index rose 4.5 percent, the BSE Realty index rose 4.3 percent, and the BSE Energy, BSE Oil & Gas, and BSE Auto indices added 2 percent each.

The BSE FMCG index was down 1.7 percent and the BSE Bank index fell 0.9 percent.

Foreign institutional investors (FIIs) sold equities worth Rs 3,901.27 crore, while Domestic institutional investors (DIIs) bought equities worth Rs 6,858.47 crore.

Since November 2023, the Sensex and the Nifty 50 have jumped 14 percent and 15 percent respectively while the BSE Midcap and Smallcap indices have jumped 21 percent each.

The domestic currency gained 24 paise to end at 82.92 in the week against the US dollar


Oil rose over 1%
An increasing number of oil tankers diverted course from the Red Sea following overnight air and sea strikes by the US and Britain on Houthi targets in Yemen after attacks on shipping by the Iran-backed group. Brent crude futures were up 90 cents, or 1.13%, at $78.31 a barrel. US West Texas Intermediate crude futures climbed 88 cents, or 1.15%, to $72.85

India’s industrial growth slump
Growth in India’s industrial output slumped to 2.4 percent in November from October’s 16-month high of 11.6 percent, At 2.4 percent, the latest industrial growth figure as per the Index of Industrial Production (IIP) is the lowest in eight months.

In the penultimate month of 2023, growth was dragged down by the manufacturing sector. The sharp slowdown in manufacturing output growth – which accounts for more than three-fourths of the IIP – was down to the holidays in November on account of festivals, which led to a reduction in working hours and, as a consequence, production.

Retail inflation accelerates to 4-month high
India’s headline retail inflation rate accelerated to a four-month high of 5.69 percent in December, according to data released by the Ministry of Statistics and Programme Implementation on January 12. The Consumer Price Index (CPI) inflation print in November was 5.55 percent.

Global Markets

Wall Street After Inflation Report
U.S. stocks closed little changed amid inflation and signs of labor market strength dampened hopes for early interest rate cuts by the Federal Reserve this year, but a fall in Treasury yields kept declines in check. The U.S. Labor Department reported that consumer prices rose more than expected in December, with Americans paying more for shelter and healthcare. A separate report showed the number of people filing new claims for unemployment benefits unexpectedly fell last week to 202,000.

Japan’s Nikkei breached 35,000
For the first time since February 1990, Japan’s Nikkei breached 35,000 after rising 28% in 2023, its strongest yearly performance in a decade. China stocks loitered near 5-year lows as investor sentiment remained subdued. The blue-chip CSI 300 Index edged higher in early trading, while Hong Kong’s Hang Seng Index rose 1.5%.

Google lays off hundreds of employees
Google has laid off hundreds of employees working on its hardware, voice assistance, and engineering teams as part of cost-cutting measures. Google earlier said it was eliminating a few hundred roles, with most of the impact on its augmented reality hardware team.

The cuts follow pledges by executives of Google and its parent company Alphabet to reduce costs. A year ago, Google said it would lay off 12,000 employees, or around 6% of its workforce.

Stocks today

JSW: The company has proposed to top a bid by Adani Power, for a thermal power plant, The tussle for the 1,980-megawatt plant in central India, ensnared in insolvency proceedings, comes after the power minister called last November for more private investment to meet dramatic rise in electricity demand.

Vedanta: Vedanta Resources Ltd. has been downgraded to selective default by S&P Global Ratings after the miner concluded a deal with creditors to extend the maturities of its three-dollar bonds. The junk-rated miner said last week its bondholders approved the changes after months of talks to tackle more than $3 billion of bonds maturing in 2024 and 2025. Under the deal, the company will pay $779 million upfront, with the remaining principal extended by as much as four years.

Tata Consumers: The company said it will be buying a 100 percent stake in Capital Foods, which markets its products under Ching’s Secret and Smith & Jones brands, for Rs 5,100 crore in an all-cash deal.”The Board of Directors approved the acquisition of 100 percent of the issued equity share capital of Capital Foods Private Limited.

Avenue Supermarts: The company which will announce its October-December results on January 13, is expected to deliver a 17 percent YoY growth in standalone revenues at Rs 13,247 crore in Q3FY24, slower than 18.5 percent in Q2FY24.