Domestic equity markets rose for the third consecutive week as key benchmark indices S&P BSE Sensex and Nifty 50 rose 0.82% and 0.57% respectively. However, both the mid-cap segment and small-cap segment closed the week in red.
Markets witnessed some fall initially due to heavy sell-off across the sectors as market participants remained jittery ahead of the release of key economic data domestically and internationally.
However, the trend reversed and markets reached fresh high after domestic economy surprised the markets with a faster-than-anticipated growth rate in the December quarter of FY24. Government data showed that Indian economy grew by roust 8.4% in the Q3 of FY24, with an upward revision in the numbers of Q1 and Q2 data for this fiscal.
Bond yields initially rose ahead of the release of the Q3FY24 GDP data of the domestic economy. However, the trend reversed after the release the GDP data as faster-than-anticipated growth rate of the domestic economy for December quarter along with ease in U.S. Treasury yields extended the gains.
Yield on the 10-year benchmark paper (7.18% GS 2033) fell by 2 bps to close at 7.06% from the previous week’s close of 7.08%.
Reserve Bank of India conducted the auction of 91 days, 182 days and 364 days Treasury Bills for an aggregate amount of Rs. 34,000 crore for which the full amount was accepted, and the cut-off rate stood at Rs. 98.2945 (YTM: 6.9594%), Rs. 96.5495 (YTM: 7.1673%) and Rs. 93.3703 (YTM: 7.1199%), respectively.
Government data showed that Gross Domestic Product (GDP) of the Indian economy at constant (2011-12) prices witnessed a growth of 8.4% in the third quarter of FY24. In the Oct-Dec quarter of last year, the GDP growth rate was 4.3%. On the sectoral front, the growth of the manufacturing sector soared to 11.6% in Q3 of FY24 from a negative 4.8% in same quarter of previous fiscal year. However, Agriculture, Livestock, Forestry & Fishing shrank by 0.8% in Q3 of FY24 compared to 5.2% growth in Q3 of FY23.
Government data showed that India’s fiscal deficit for the period from Apr to Jan of FY24 stood at Rs. 11.03 lakh crore or 63.6% of budget estimates of the current fiscal. India’s fiscal deficit stood at 67.8% of the budget estimate in the corresponding period of the previous fiscal year. Total expenditure stood at Rs. 33.55 lakh crore or 74.7% of the budget estimate as compared to 75.7% of the budget estimate in the corresponding period of the previous fiscal year.
According to the government data, the combined Index of Eight Core Industries increased by 3.6% in Jan 2024 as compared to 9.7% in Jan 2023. The production of all Eight Core Industries recorded growth in Jan 2024 over the corresponding month of last year except refinery products and fertilizers. Coal witnessed the maximum growth at 10.2% in Jan 2024 followed by steel with 7.0% growth.
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.
More From Blogs
Join 5,000+ subscribers
We will never spam you
Weekly Market Update26 Oct 2026
Alpha Research
Oct 27, 2026
What Prisoners of Geography Taught Me About Investing in a World at War
