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WEEKLY OVERVIEW
Bulls marched Dalal Street pushing benchmark indices higher by 1 percent each, with the Nifty closing above 22,000 comfortably. At close, Nifty, this week, added 258.2 points or 1.18 percent to end at 22,040.70, while BSE Sensex rose 831.15 or 1.16 percent to close at 72,426.64.
Among the Sectors, the BSE Auto index rose 5 percent, the BSE Oil & Gas index gained 3 percent, BSE Energy index rose 3 percent. On the other hand, BSE Telecom, FMCG, and Metal indices are down 0.5 percent each.
The BSE Small-cap index ended on a flat note while the BSE Mid-cap Index rose 1 percent and the BSE Large-cap Index added 1.2 percent
Regarding Market capitalization, Wipro added the most in terms of market value, followed by State Bank of India, Mahindra and Mahindra, and Maruti Suzuki India. On the other hand, ITC, Hindustan Unilever, and Sun Pharmaceutical Industries lost most of their market cap.
Foreign institutional investors (FIIs) extended the selling this week as they sold equities worth Rs 6,237.55 crore. In comparison, Domestic institutional investors (DIIs) have provided support by buying of equities worth Rs 8,731.60 crore during the week. However, considering February till now, the FIIs sold equities worth Rs 13,917.89 crore, while DIIs bought equities worth Rs 17,393.01 crore.
The Indian rupee ended flat at 83.01 for the week ended February 16 against the February 9 closing of 83.03.
ECONOMY
India faces excessive foreign inflows post bond index inclusion, US rate cuts
Indian sovereign debt is set to see sizeable foreign inflows in 2024-25, particularly From June, Indian government bonds will become a part of JPMorgan’s Government Bond Index-Emerging Markets (GBI-EM) global index suite, which is seen bringing in foreign money to the tune of nearly $25 billion into local debt over 10 months.
but the local currency may not appreciate much due to the Reserve Bank of India (RBI) exercising close control over the exchange rate.
India resumes buying Russian Sokol oil
India has resumed imports of Russian Sokol oil after a two-month gap with at least two refiners, taking deliveries of the light sweet crude in February. Indian state refiners had to stop buying the grade last year after the government advised them against using Chinese yuan to pay for Russian oil amid strained relations between New Delhi and Beijing.
India did not receive Sokol oil in December and January, data from trade sources and the ship tracking data shows.
Now, as per the sources, India’s Hindustan Petroleum Corp has bought Sokol oil from a trader. HPCL is likely to pay for the oil in UAE dirhams, three of them added.
Goldman views India’s potential growth above 6% this decade
India’s economic growth may exceed 6% for the rest of the decade, driving more investments from China into the South Asian country, as per Goldman Sachs.
Potential growth is an estimate of the pace an economy can grow without causing excess inflation. India’s central bank governor last month estimated the nation’s potential growth rate was around 7%.
Goldman Sachs expects the private sector in India to accelerate investments after nationwide elections. Businesses have deleveraged aggressively and their balance sheets are among the “cleanest that we have seen India in the last 20 years”, they claimed.
GLOBAL MARKETS
Wall Street went down as hot producer price data preventing rate-cut bets
A Labor Department report showed producer prices increased more than expected in January, feeding fears inflation was picking up after months of cooling. After five consecutive weeks of gains, all three indexes posted a weekly decline. Earlier this week, a hot consumer prices report sparked a selloff in equity markets.
The S&P 500 lost 24.18 points, or 0.49%, while the Nasdaq Composite lost 132.38 points or 0.83% and The Dow Jones Industrial Average fell 149.48 points, or 0.39%.
Asian market: Nikkei charges toward all-time high
Japan’s Nikkei charged toward an all-time high on Friday, helped higher by a buoyant Wall Street after a big fall in U.S. retail sales revived the chance of a June rate cut
Nikkei surged 1.4% to 38,678 points, just within a whisker of the all-time high of 38,957 points hit in 1989 that marked the peak of Japan’s so-called “bubble economy.”
Elsewhere, Asian shares mostly tracked Wall Street higher. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% and was headed for a 1.4% weekly gain.
STOCKS IN NEWS
Data Patterns (India): The Government of Singapore acquired 31,47,725 shares of Data Patterns (India) on February 16 at an average price of Rs 1,837 valuing the transaction at Rs 578.23 crore. Other bulk buyers of the stock were Kotak Mahindra Mutual Fund and Mirae Asset Mutual Fund, which bought 4,55,000 shares and 7,10,310 shares, respectively, at the same price.
Reliance Industries: Analysts have valued Reliance Industries Ltd’s new energy business at as much as Rs 2.36 lakh crore (Rs 350 per share), exceeding the market value of half of the benchmark Nifty index’s constituents. Investor confidence in India’s largest conglomerate has surged on increased optimism about the prospects of the new energy unit.
Tata Motors: Shares of Tata Motors Limited were up over 3 percent on February 16 afternoon following the company’s announcement of the commercial launch of its multipurpose heavy-duty trucks in South Africa. The trucks feature a walk-through cabin, power steering, dashboard-mounted gear lever, booster-assisted clutch, and mechanically suspended seat for safe driving, the automobile major said in a press release.
SpiceJet: The stock rose 12% on Friday as its CMD Ajay Singh and Busy Bee Airways Private Limited have jointly submitted a bid for crisis-hit GoFirst airline.SpiceJet will serve as the operating partner for the new airline by providing staff and services, said the airline in an exchange filing.
Dr.Reddy’s Laboratories: Indian pharma major Dr. Reddy’s is in a race to acquire Novartis AG’s stake in Novartis India, according to a report by CNBC TV 18. As per the sources, Novartis India responded “While Novartis AG has commenced the strategic review that will include an assessment of its 70.68 percent shareholding in Novartis India Limited, no decision has yet been taken regarding the eventual outcome,”