•    Domestic equity markets rose for the second consecutive week as key benchmark indices S&P BSE Sensex and Nifty 50 rose 1.13% and 1.04% respectively. The rally was broad-based as the mid-cap and small-cap segments also closed the week in green. 

•    Domestic equity markets rose during the week supported by buying across the sectors. Banking & financial stocks significantly attributed to the gains following the RBI’s circular that relaxed the provisioning norms on investments in Alternative Investment Funds (AIFs) for the regulated entities like banks and non-banking financial companies. 

•    Most of the sectoral indices were positive this week. Nifty Realty, Nifty Auto and Nifty Healthcare Index were high performers gaining 4.8%, 3.5% and 3.0% respectively. While Nifty Private Banks, Nifty Media and Nifty IT were at the bottom. Nifty Private Banks was tad positive and showed gains of 0.9%. Whereas Nifty Media and Nifty IT lost (-) 1.7% and (-) 3.1% respectively.

•    Market sentiments were boosted due to fall in crude oil prices after data showing a significant surge in crude stockpiles in the U.S. as fall in crude oil prices is positive for country like India which imports more than 80% of its crude oil needs. 

•    Bond yields decreased amid value buying after a recent decline in bond prices. Gains were extended following the government's planned borrowing from the market for the first half of the year which was substantially less than expected. 

•    Yield on the 10-year benchmark paper (7.18% GS 2033) fell by 3 bps to close at 7.06% from the previous week’s close of 7.09%. 

•    According to the Ministry of Commerce & Industry, the combined Index of Eight Core Industries increased by 6.7% in Feb 2024 as compared to 7.4% in Feb 2023. The production of all Eight Core Industries recorded growth in Feb 2024 over the corresponding month of last year except fertilizers. Coal witnessed the maximum growth at 11.6% in Feb 2024 followed by natural gas with 11.3% growth. 

•    India’s current account deficit narrowed to US$ 10.5 billion (1.2% of GDP) in Q3 FY24 from US$ 11.4 billion (1.3% of GDP) in Q2 FY24 and it was also lower than US$ 16.8 billion (2.0% of GDP) compared to the same period of previous year. This improvement was primarily driven by higher service exports, with a 5.2% YoY growth in services exports, particularly in software, business, and travel services. 

•    Government data showed that India’s fiscal deficit for the period from Apr to Feb of FY24 stood at Rs. 15.01 lakh crore or 86.5% of budget estimates of the current fiscal. India’s fiscal deficit stood at 82.8% of the budget estimate in the corresponding period of the previous fiscal year. 

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.