• Domestic equity markets rose after witnessing fall in the previous week as key benchmark indices S&P BSE Sensex and Nifty 50 rose 0.26% and 0.33% respectively. The mid-cap and small-cap segment also closed the week in green.

• Domestic equity markets fell initially as investors remained cautious ahead of the U.S. central bank’s rate decision, as market participants were expecting no change in interest rate due to hotter-than-expected inflation in the U.S. and awaited for interest rate trajectory with comments from the officials of the U.S. Federal Reserve.

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• However, domestic equity markets rebounded after the U.S. Federal Reserve left interest rates unchanged for a fifth consecutive meeting in Mar 2024 and maintained its forecast for three rate cuts in 2024.

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• Bond yields rose following the rise in U.S. Treasury yields. Losses were extended as the week's record state debt supply negatively impacted market participants' sentiment. Yields rose further as states surprised the market by announcing plans to hold another record debt sale during the holiday-truncated last week of the fiscal year.

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• However, losses were restricted following the U.S. Federal Reserve’s decision to keep the interest rate unchanged with an outlook for three rate cuts this year.

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

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• The Reserve Bank of India's Liberalized Remittance Scheme saw a 24% YoY increase in outward remittances to $27.42 billion during the Apr to Jan for FY24. Remittances from overseas reached $2.62 billion in Jan 2024, almost 9% more than in Dec 2023 of $2.40 billion.

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• According to data released by the Petroleum Planning and Analysis Cell, the amount of crude oil processed by Indian refiners remained almost steady in Feb 2024 at 20.9 million metric tonnes (MMT) compared to 20.8 MMT processed in Feb 2023. However, volumes decreased by 7.48% MoM in Feb 2024 compared to 22.5 MMT in Jan 2024.

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• Preliminary data showed that manufacturing Purchasing Managers' Index rose to 59.2 in Mar 2024 compared to final Feb 2024 value of 56.9, bolstered by strong manufacturing output with the fastest expansions in factory orders and production in nearly three-and-a-half years.

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.