• Domestic equity markets rose after witnessing fall for consecutive four weeks as key benchmark indices BSE Sensex and Nifty 50 rose 0.41% and 0.51%, respectively. The rally was broad-based as the mid-cap segment and the small-cap segment both closed the week in green.

• However, persistent selling by foreign portfolio investors in domestic equity markets restricted the gains. Additionally, a cautious undertone prevailed ahead of the U.S. presidential election 2024.

• On the BSE sectoral front, BSE capital goods rose 4.74% following a rebound in core sector data of Sep 2024 and government spending.

• BSE IT fell 2.91% as significant selling pressure was witnessed among the information technology stocks after a major global IT company reduced guidance.

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• Globally, the U.S. markets showed slight improvements, with the S&P 500 and Dow Jones indices both gaining a modest 0.1%, and NASDAQ rising by 0.5%.

• The upward trend reflects resilient U.S. consumer spending data and positive corporate earnings, which have helped offset concerns about the Federal Reserve’s stance on interest rates.

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• In Asia, Japan’s Nikkei 225 saw strong growth of 3.08% on the back of a weaker yen, which has favored Japanese exporters. Meanwhile, China’s Hang Seng and the Shanghai Composite saw slight declines due to ongoing concerns about the economic recovery and regulatory challenges.

• Bond yields remained steady over the week as the increase in domestic bond yields following a rise in U.S. Treasury yields was offset by the active participation of value investors.

• Government data showed that India’s fiscal deficit for the period from Apr to Sep of FY25 stood at Rs. 4.75 lakh crore or 29.4% of the Budget Estimates (BE) of the current fiscal. India’s fiscal deficit was at 39.3% of the BE in the corresponding period of the previous fiscal year. Total expenditure stood at Rs. 21.1 lakh crore or 43.8% of the BE as compared to 47.1% of the BE in the corresponding period of the previous fiscal year.

• Gold slipped 0.4% for the week while gaining more than 4% for the month – its second best October in the last decade - driven by solid investor demand amid evolving Middle East geopolitical tensions and the prospect of a 25 bps point Fed rate cut on Thursday.

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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