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WEEKLY MARKET REPORT
During the week, the market remained volatile with positive bias amid mixed cues including geopolitical de-escalation, falling crude oil prices, mixed 4QFY24 earnings, weaker-than-forecasted GDP growth, higher inflation, and rising US bond yield.
This week, BSE Sensex gained 641.83 points or 0.87 percent to end at 73,730.16, while the Nifty50 index finished at 22,420, rising 273 points or 1.23 percent.
Despite the Nifty Midcap 100 index gaining 4 percent to touch a fresh all-time high of 50,684.50, broader indices continued to outperform the main indices in the week ended April 26 as mid and small-cap indices jumped 4 percent each with more than 100 small-cap stocks giving double-digit returns and the Large-cap index rising 1.5 percent.
All the sectoral indices ended in the green with the Nifty PSU Bank index surging 6.4 percent, Nifty Realty climbing 4.6 percent, Nifty Metal index rising 3.5 percent and Nifty Pharma jumping 3 percent.
During the week, Foreign institutional investors (FIIs) sold equities worth Rs 14,703.72 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 20,796.16 crore. However, for the month to date, FIIs sold equities worth Rs 36,933.21 crore, and DIIs purchased equities worth Rs 42,065.12 crore.
ECONOMY
Deloitte projects India’s FY25 GDP growth at 6.6%
In its India’s economic outlook report on Friday, Deloitte said the rapid growth of the middle-income class has led to rising purchasing power and even created demand for premium luxury products and services.
The country’s GDP growth is estimated to reach around 6.6 percent in FY 2024-25 and 6.75 percent in the year after, as markets learn to factor in geopolitical uncertainties in their investment and consumption decisions, Deloitte said in its quarterly update to its economic outlook.
Gold trims gains as US Treasury yields rise after economic data
Gold prices trimmed gains on Thursday as U.S. Treasury yields rose after economic data showed signs of persistent inflation, lowering hopes of the Federal Reserve cutting interest rates anytime soon.
Spot gold firmed 0.3% at $2,321.70 per ounce by 9:47 a.m. ET (1347 GMT) after rising as much as 0.8% earlier in the session. Prices were down over $100 from an all-time high of $2,431.29 scaled on April 12, fuelled by geopolitical turmoil.
Oil steady as US demand concerns balance Middle East conflict risks
Oil steadied on Thursday after settling lower the previous day as signs of retreating fuel demand in the U.S., the world’s biggest oil user, contended with widening conflict risks in the Middle East.
This week’s supply report from the U.S. Energy Information Administration (EIA) on Wednesday showed gasoline stockpiles fell less than forecast while distillate stockpiles rose against expectations of a decline, reflecting signs of slowing demand.
GLOBAL MARKETS
Wall Street shares close up as mega-cap tech stocks rally
US stocks closed higher on Friday, buoyed by a rally in mega-cap growth stocks following robust quarterly results from technology heavyweights Alphabet and Microsoft in addition to moderate inflation data.
Alphabet’s shares jumped 10% and reached a record high, lifting the Google parent’s market value above $2 trillion. Amazon.com rose 3.4%, Nvidia gained 5.8%, and Meta Platforms added 0.4%. However, Apple fell 0.3% and Tesla closed down 1.1%. On Wednesday, Meta results had disappointed investors even as the company ratcheted up spending on AI.
Six out of the 11 major S&P 500 sectors finished higher, led by gains in communication services, technology, consumer discretionary, and materials.
Asia stocks, yen tentative with eyes on BOJ decision
Asian shares rose cautiously on Friday as markets sobered up to the idea that U.S. rate cuts were most likely some time away, while the yen and Japanese government bonds struggled ahead of a closely watched policy decision by the Bank of Japan.
The highlight of Asia Day was the BOJ’s rate decision after its two-day monetary policy meeting, as well as Governor Kazuo Ueda’s news conference thereafter.
Ahead of the outcome, the yen languished near a 34-year low and was little changed at 155.62 per dollar, while the 10-year JGB yield rose to a five-month high of 0.93%.
STOCKS IN NEWS
Maruti Suzuki: Maruti Suzuki India, on Friday reported a 48 percent rise in its net profit to Rs 3,878 crore for the fourth quarter ended March 31, 2024, on account of higher sales volume and favorable commodity prices. The company’s profit after tax (PAT) during the corresponding period last year stood at Rs 2,624 crore and a revenue of Rs 38,235 crore in the three months ended March 31. Additionally, the company declared its highest-ever dividend of Rs 125 per share.
Laurus Labs: The company’s net profit fell 25 percent to Rs 76 crore in the March quarter from the year-ago period, the pharma firm said. Revenue, however, rose 4 percent to Rs 1,439.67 crore. Brokerage Jefferies maintained an “underperform” call on the Laurus Labs, with a target price of Rs 250 apiece. With another weak quarter, Laurus missed estimates yet again, the brokerage said.
Yes Bank: Private sector lender Yes Bank on April 27 reported a net profit of Rs 451 crore for the Q4 in FY24, which marks a 123 percent jump as compared to Rs 202 crore clocked in the year-ago period. The bank’s gross non-performing asset (NPA) stood at 1.7 percent, On the other hand, net NPA for the quarter stood at 0.6 percent. The net interest income (NII) of the lender came in at Rs 2153 crore.
RBL Bank: The Bank on April 27 reported a 30 percent rise in the March quarter of FY 2023-24 at Rs 353 crore. Bank’s net interest margin came at 5.45 percent, down from 5.62 percent and its net interest income was at Rs 1600 crore, 18 percent up. Further, the bank declared a dividend of Rs 1.50 per equity share. The gross non-performing assets (GNPA) improved 72 bps YoY to 2.65 percent while NNPA improved 36bps YoY to 0.74 percent.
PVR Inox: The company is offering ad-free movies just like a streaming platform. Weak box office collections of movies have affected the theatre business with big Bollywood films also delivering sub-par performances in the last three months. Cutting down the length of the ads slotted before a movie begins on the big screen from 35 minutes to 10 minutes, the company is looking to add extra shows.