• Domestic equity markets rose during the week after witnessing fall in the previous week as key benchmark indices BSE Sensex and Nifty 50 rose 1.98% and 1.59%, respectively. The rally was broad-based as the mid-cap segment and the small-cap segment both closed the week in green.

• Domestic equity markets started the week on weaker note as sentiment was weighed following rising tensions between Russia and Ukraine. According to the latest media reports, Russian President has approved an updated nuclear doctrine that expands Russia's use of atomic weapons, just days after the U.S. granted Ukraine limited permission for long-range missile strikes on Russian territory.

• Among sectoral indices, Nifty Reality was the top performing index increasing sharply by 6.3% from previous week’s close. This comes after consecutive weekly declines in the month of Nov-2024. The gains were visible in the Nifty Auto index and Nifty Consumer durables index, each increasing by 2.5% from its previous week’s close. Week on Week basis, gains were witnessed across sectors except Nifty Media and Nifty Oil and Gas, both declining by 1.7% and 1.2% respectively. Nifty Banking, FMCG and Pharma, all ended on a positive note after witnessing declines in the previous weeks. Nifty IT continued its weekly gains and ended up higher by 2.2%.

• Globally, we saw a mixed reaction with US markets continuing its gains with Dow Jones increasing by 0.5%, whereas Asian markets saw a divide in movement. 

• Bond yields rose following a fresh supply of benchmark government securities in the weekly auction. Government has sold benchmark paper 6.79% GS 2034 worth of Rs. 22,000 crore through auction on Nov 22, 2024. Losses were extended after the RBI emphasized its concern on domestic inflation.

• Gold posted its strongest weekly gain of nearly 6% since March 2023, driven by heightened geopolitical tensions from the Russia-Ukraine conflict. Investors sought safe-haven assets even as the U.S. dollar remained strong. Meanwhile, a surprise drop in U.S. jobless claims tempered expectations for aggressive Federal Reserve rate cuts.

• Silver rallied over 3.5% last week, underpinned by safe-haven buying in the broader bullion complex. However, its performance lagged gold due to continued weakness in industrial metals. Escalating global tensions added to market unease, with Russian President Vladimir Putin warning of an escalating conflict following Ukraine’s use of U.S. and U.K. supplied weapons.

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• Crude oil rebounded sharply, climbing over 6% last week. The intensification of the Russia-Ukraine conflict added a geopolitical risk premium, with Moscow ramping up its offensive in response to U.S. and U.K. support for Ukraine.

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• According to the RBI data, outward remittances under the Liberalized Remittance Scheme (LRS) fell by 14.88% YoY in H1 FY25 at $15.61 billion, driven by declines across major segments. International travel, which accounts for nearly 57% of total outward remittances under LRS, saw a marginal decline of about 1% YoY to $9.20 billion in H1 FY25.

Best Regards,

​​​​​​​Alpha Research Team

Disclaimer

The above views are our expectations of the economy, market and investments. The views may or may not play out accordingly. You are requested to do your own due diligence before making any investment