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WEEKLY OVERVIEW OF MARKET
Indian equity indices extended the previous week’s gains and added a percent with the Nifty50 index hitting a fresh record high of 22,297.50 in the week ended February 23 led by support from global markets, ignoring surging crude oil prices and US bond yields.
In this week, BSE Sensex inched closer to its record high level of 73,427.59 and ended 716.16 or 1 percent higher at 73,142.8. The Nifty50 index rose 172 points or 0.78 percent to end at 22,212.70.
Regarding the Broader markets, the BSE Small-cap index added 0.8 percent while the BSE Large-cap Index rose 1 percent and the BSE Mid-cap Index ended flat.
Among the Sectors, the BSE Realty index added 4 percent, the BSE Telecom index rose 3.8 percent, BSE FMCG and Power indices gained 1.5 percent each. On the other hand, the BSE Oil & Gas index is down 2 percent and the BSE Information Technology index is down 1 percent.
In terms of market value, Reliance Industries added the most, followed by ICICI Bank, Sun Pharmaceutical Industries Mahindra, and Mahindra. On the other hand, Tata Consultancy Services, Infosys, and Wipro lost most of their market cap.
Foreign institutional investors (FIIs) continued to remain sellers this week also as they sold equities worth Rs 1,939.40 crore, on the other hand, Domestic institutional investors (DIIs) bought equities worth Rs 3532.82 crore during the week. However, from February till now, the FIIs sold equities worth Rs 15,857.29 crore, while DIIs bought equities worth Rs 20,925.83 crore.
The Indian rupee ended marginally higher at 82.94 in the week ended February 23 against the February 16 closing of 83.01.
Economy
Gold gains while the dollar weakens
Gold prices were set for a weekly gain on Friday, buoyed by a softer dollar as US Federal Reserve officials bruised hopes of early interest rate cuts this year and safe-haven demand amid Middle East tensions. Spot gold was up 0.6% to $2,036.39 per ounce, and was on track for a 1.1% weekly rise.
The dollar index was heading for its first weekly dip in almost two months and US Treasury yields were also down for the week, making greenback-priced bullion less expensive to overseas buyers.
Oil set for a weekly decline
Oil prices fell more than 2% on Friday and were on track for a weekly decline after the US central bank indicated interest rate cuts could be delayed by at least two more months.
For the week, Brent is set to decline about 2% and the US benchmark is on track to fall about 3%. However, indications of healthy fuel demand and supply concerns could revive prices in the coming days.
India’s forex reserves decline to $616 billion
India’s foreign exchange reserves declined to $616.10 billion, data released by the Reserve Bank of India (RBI) on February 23 showed.
At $616.10 billion, the forex reserves were down $1.13 billion from the previous week. Being the lowest in two months, the RBI’s stated stance is to only intervene in the market to prevent sharp volatility in the rupee’s exchange rate. The reserves were last lower when they stood at $615.97 billion as of December 15.
Global Markets
Global stocks set for gains
Starting in late 2023, the rally has pushed many indices close to lifetime highs and in some cases to new records on now-extinguished expectations that the U.S. Federal Reserve would start cutting rates as early as next month.
Although rate-cut bets have been tempered, indexes have continued to gain on strong earnings and booming tech stocks, even as bonds have retreated.
Backed by a strong economy, India’s benchmark BSE index is forecast to add 8% this year, extending 2023’s near 19% surge but the S&P 500 is seen gaining only 2.4%, a fraction of last year’s 24% rally.
Asia stocks rely on Excitement as Nvidia boom
Asia stocks rose on Friday and put global markets on course for a week of heady gains as AI darling Nvidia’s stunning results sparked a wave of record highs from Asia to Europe and the U.S.
Nvidia surged 15%, adding a record $250 billion in market value on Thursday. The Santa Clara, California-based company’s results supercharged a global AI-led rally in technology stocks, propelling the S&P 500, the Dow Jones Industrials, Europe’s STOXX 600, and Japan’s Nikkei share average to record highs.
Nvidia beats Amazon to become 3rd most valuable US firm
Nvidia shares closed 16 percent higher in the US trading after a stellar Q4 earnings show. Also, the stock price hit a record high of $785 and added a massive $277 billion in value, lifting the chip giant’s market cap to $1.96 trillion. With this, Nvidia has become the third largest company in the US by market cap, overtaking Jeff Bezos’ Amazon.
The US tech giant posted revenue of $22.10 billion for its fourth quarter, a remarkable 265 percent year-on-year increase. Concurrently, net income experienced a substantial surge of 769 percent. This impressive performance is attributed to the ongoing enthusiasm and interest surrounding artificial intelligence.
Stocks in News
Adani Enterprises: The total value of GQG Partners LLC’s stake in Adani Group companies has grown about fivefold, as the stocks extend their recovery from short-seller Hindenburg Research’s scathing report. The fund’s initial investment of $1.9 billion in March has ballooned to $10 billion in value, helped by market gains and additional stakes. The Gautam Adani-led group has recovered more than two-thirds of the market capitalization that it lost following the report.
Sona Comstar: Shares of Sona BLW Precision Forgings, also known as Sona Comstar, gained 5 percent after the company said that it has received certification under the auto Production Linked Incentive (PLI) scheme. The company had filed seven applications for different products under the PLI scheme, and it has received the certification for its first product, a hub wheel drive motor for electric two-wheelers, Sona Comstar said in a regulatory filing. The company is the first automotive component company to receive the certification, it added.
Jio Financial Services: The company’s market capitalization exceeded Rs 2 lakh crore for the first time, driven by a 35 percent surge in its share price this year. Parent company Reliance Industries also hit a record high on February 23. Currently, 39 firms are trading above Rs 2 lakh crore market capitalization on local stock exchanges. Reliance Industries leads with a market cap of Rs 20.05 lakh crore, followed by Tata Consultancy Services and HDFC Bank with Rs 14.78 lakh crore and Rs 10.78 lakh crore, respectively.
Bajaj Auto: On Thursday, Bajaj Auto said in a regulatory filing that it has raised its stake in Yulu Bike to 18.8 percent of the paid-up equity share capital with an additional Rs 45.75 crore investment in the company. Electric bike-sharing platform Yulu Bikes has secured USD 19.25 million (Rs 160 crore) capital in equity funding through the issuance of shares to the company’s existing strategic investors– Magna and Bajaj Auto Ltd. The capital infusion will enable Yulu to maintain its growth streak and will strengthen its market leadership as it expands its reach in terms of vehicles, operational locations, and product and technology innovation