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WEEKLY-MARKET REPORT
Indian market extended the winning run for the second consecutive week with benchmarks hitting fresh record highs in the week ended June 14 led by moderate US and domestic inflation print, positive global markets, FIIs buying, and inline FOMC meeting outcome.
This week, BSE Sensex added 299.41 points or 0.39 percent to finish at 76,992.77, while the Nifty50 index gained 175.45 points or 0.75 percent to end at 23,465.60.
Among the broader indices, the BSE Small-cap index added 5 percent, the Mid-cap index rose 4.4 percent and the Large-cap index gained 1 percent.
During the week, BSE Sensex and Nifty50 touched their fresh record highs of 77,145.46 and 23,490.40, respectively.
In terms of market value, UltraTech Cement added the most, followed by Larsen & Toubro, HDFC Bank, and Power Grid Corporation of India. On the other hand, Hindustan Unilever, Tata Consultancy Services, and Infosys lost most of their market cap.
Among sectors, the BSE Capital Goods index added 6.4 percent, the BSE Realty index gained 5.4 percent, the BSE Telecom index gained nearly 4 percent, and the BSE Oil & Gas index rose 3.5 percent each. However, BSE Information Technology and FMCG indices shed 1 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 erased all the previous week’s gains and closed 18 paise lower at 83.56 on June 14 against its June 7 closing of 83.38.
ECONOMY
G7 strikes provisional deal on using Russian assets for $50-bn Ukraine loan
World leaders have struck a deal to use the profits of frozen Russian assets to secure a loan of “approximately $50 billion” to aid Ukraine financially, according to a declaration to be issued by a summit of the G7. Diplomats had already laid the ground for a preliminary agreement as leaders from the group of seven advanced economies gathered on Thursday in Puglia, Italy, for the start of a three-day meeting.
Govt to launch 10th round of commercial coal auctions next week
The central government is set to launch the 10th round of commercial coal block auction, the Union Coal Ministry said in a statement on June 14.
The new round of auction, which will be launched by newly-appointed coal minister G Kishan Reddy next week, will see 62 blocks on offer without end-user curbs, the statement said. The government allows coal produced from these blocks to be sold by the allottee in the free market.
Wholesale price inflation rises for 3rd straight month to 2.61% in May
India’s wholesale price index-based inflation rose for the third straight month to 2.61 percent in May on a year-on-year basis as against 1.26 percent a month ago, data from the commerce ministry showed on June 14.
“Positive rate of inflation in May 2024 is primarily due to an increase in prices of food articles, manufacture of food products, crude petroleum and natural gas, mineral oils, other manufacturing, etc,” the Ministry of Commerce and Industry said in a statement.
GLOBAL MARKETS
Nasdaq manages 5th straight record high close; S&P 500 ends barely lower
The Nasdaq eked out a fifth straight record closing high on Friday following gains in Adobe and other technology-related shares, while the S&P 500 and Dow ended slightly lower. The S&P 500 ended its four-day run of record closing highs, but still climbed more than 1% for the week.
The Dow Jones Industrial Average fell 57.94 points, or 0.15%, to 38,589.16. The S&P 500 lost 2.14 points, or 0.04%, at 5,431.6 and the Nasdaq Composite added 21.32 points, or 0.12%, at 17,688.88.
Asian stocks slide, yen wobbles ahead of BOJ verdict
Asian stocks fell on Friday as investors pondered the outlook for U.S. rates after the Federal Reserve tempered its rate-cut views even as inflation came in softer than expected, while the yen was shaky before the Bank of Japan’s policy meeting.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.48% lower. Chinese stocks also fell, with the blue-chip shares down 0.3%, while Hong Kong’s Hang Seng was 0.79% lower.
Japan’s Nikkei declined 0.25%, while the yen was slightly weaker at 157.185 per dollar in early trading ahead of the BOJ meeting where the central bank is likely to keep interest rates ultra-low.
Oil prices on track for weekly gain on solid demand outlook
Oil prices fell on Friday but were on track for their first weekly gain in four weeks as markets assessed the impact of higher-for-longer U.S. interest rates versus solid outlooks for crude and fuel demand this year.
In a see-saw week, oil prices rallied after the Organization of Petroleum Exporting Countries (OPEC) stuck to a forecast for relatively strong growth in global oil demand for 2024 and Goldman Sachs projected solid U.S. fuel demand this summer.
Brent crude futures were down 72 cents, or 0.87%, to $82.04 a barrel at 0100 GMT. West Texas Intermediate (WTI) U.S. crude futures lost 79 cents, or 1%, to trade at $77.84 a barrel, reversing small gains in the previous session.
STOCKS TODAY
Tata Elxsi: Shares of Tata Elxsi gained around 2 percent on June 14 after the company announced its collaboration with Red Hat, the world’s leading provider of enterprise open-source solutions to monetize applications and reduce operational expenditures through simplifying operations in 5G networks for telcos and enterprises. The two entities will work together on 5 5G-connected cars using Tata Elxsi CVP platform TETHER, and Red Hat In-Vehicle OS to make moving applications in a 5G multi-cloud environment for telcos and MVNOs (mobile virtual network operators).
Prestige Estates: Shares of Prestige Estates Projects surged over 6 percent to an all-time high of Rs 1,997 per share on June 14 after global brokerage firm CLSA reiterated its ‘buy’ rating and raised the target price to Rs 2,320, suggesting a potential upside of over 16 percent from current levels. CLSA pointed out that Prestige Estates’ valuations remain discounted compared to peers and expects a continued re-rating, noting that debt concerns were overblown. “Operational cash flow will significantly support its capex and project pipeline growth,” the firm stated.
EIH Associated Hotels: Shares of EIH Associated Hotels, the flagship company of The Oberoi Group, gained around 5 percent to hit a 52-week high of Rs 892.60 on the National Stock Exchange (NSE) ahead of the company’s board meeting on Friday, June 14. The board will meet to consider and approve the issue of bonus shares to the equity shareholders of the company.
Vodafone Idea: Shares of Vodafone Idea (VIL) surged by a percent to Rs 16.38 per share on June 14 after it approved issuing shares worth up to Rs 2,458 crore on a preferential basis to Ericsson India, Nokia India, and Networks India. The stock of this telecom operator surged over 23 percent in the past 3 months, as compared to a 5 percent rise in the benchmark Nifty 50 index.