• Domestic equity markets rose for the second consecutive week as key benchmark indices S&P BSE Sensex and Nifty 50 rose 0.99% and 0.78% respectively. The mid-cap & Small-cap segment both closed the week in green.

• Domestic equity markets extended its gains from the previous week’s close on expectations of improved private capital expenditure and political stability.

• Gains were further extended following the improvement in PMI Services flash data of Feb 2024 from the Eurozone along with an impressive earning report from a major U.S. tech company.

• Sentiments were boosted after PMI flash data of Feb2024 for both manufacturing and services activities increased for the domestic economy.

• Bond yields fell as market participants went for value buying after a recent fall in bond prices. Gains were extended as foreign investors went on a buying binge before Indian government bonds were set to be added to JPMorgan's emerging market debt index in Jun 2024. However, gains were restricted tracking the rise in U.S. Treasury yields after the minutes of the most recent meeting of the U.S. Federal Reserve revealed that policymakers were worried about lowering interest rates too soon.

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• Yield on the 10-year benchmark paper (7.18% GS 2033) fell by 2bps to close at 7.08% from the previous week’s close of 7.10%.

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• Gold prices gain on Friday, buoyed by a softer dollar and safe-haven demand from escalating tensions in the Middle East, even as U.S. Federal Reserve officials bruised hopes of early rate cuts this year.

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• According to media reports, India’s imports of crude oil reached a record high in Jan 2024 due to the Red Sea shipping crisis, which delayed the arrival of cargo from America in Dec 2023. India’s oil imports hit 5.24 million barrels per day in Jan 2024, up 17% from Dec 2023 and 3.5% higher than Jan 2023.

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• Government has significantly increased institutional credit to the agriculture sector in the last ten years, banks disbursed Rs. 20.39 lakh crores till Jan 2024 of FY24, compared to Rs.7.3 lakh crore during the entire FY14. The government set an agriculture credit target of Rs.20 lakh crore in the budget for FY24.

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• According to the most recent data gathered by the insolvency regulator, creditors' recovery from defaulters under the Insolvency and Bankruptcy Code decreased to nearly 26% of their admitted claims in the Dec 2023 quarter to Rs.4,281 crore from 33% in the preceding three months. Since 2016, the total amount recovered has been Rs.3.21 lakh crore.

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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.