As the second week of April 2024 unfolds, investors brace themselves for a flurry of crucial corporate and macroeconomic data releases, shaping market dynamics in the new fiscal year 2024-25 (FY25). This week, the spotlight remains on the initial batch of January-March quarter results for fiscal 2023-24 (Q4FY24), alongside domestic macroeconomic indicators, corporate announcements, crude oil prices, foreign capital movements, and global market trends, all poised to influence stock market trajectories.
The Nifty 50 surged to an all-time high of 22,619, concluding the week above the 22,500 mark with a notable gain of 0.84%. Similarly, the 30-share BSE Sensex climbed 596.87 points or 0.81% to close at 74,248.22, hitting a record peak of 74,501.73. Key sectors such as metal, realty, and banking led the upward momentum, reflecting substantial gains.
A noteworthy aspect of the week was the remarkable performance of broader indices, with the midcap index achieving a record high at 50,000, registering its most significant weekly surge in seven months. Simultaneously, the smallcap index saw an impressive gain of over seven percent.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) announced its first policy decision for FY25, maintaining the interest rate unchanged at 6.5%, aligning with market expectations. This decision spurred a 2.70% gain in the financial services sector, led by top private lender HDFC Bank, which reported sequential deposit growth in the March quarter, propelling its stock by 7.02% for the week.
Vinod Nair, Head of Research at Geojit Financial Services, noted a rise in volatility towards the week’s end due to surges in US bond yields and crude oil prices, coupled with escalating geopolitical tensions. While the RBI’s policy decision met expectations, concerns persisted regarding food inflation and heat wave alerts, tempering market sentiment.
Looking ahead, the focus shifts to significant listings in the mainboard and small-and-medium enterprises (SME) segments, with several IPOs scheduled for subscription. Additionally, investors await key economic indicators and corporate earnings reports, expecting Tata Consultancy Services (TCS) to kick off the Q4FY24 earnings season on April 12.
Foreign portfolio investors (FPIs) commenced FY25 on a subdued note after being net buyers in Indian equities and debt during FY24. Despite recent volatility in US bond yields, FPI inflows remain positive, albeit with some fluctuations, reflecting ongoing market dynamics and global economic trends.
