• Domestic equity markets rose for the second consecutive week as key benchmark indices S&P BSE Sensex and Nifty 50 rose 2.02% and 2.19%, respectively. The rally was broad based as the mid-cap segment and the small-cap segment both closed the week in green.

• Sectoral indices ended positive this week. Nifty Media, Nifty Metal & Nifty PSU Bank were amongst the highest gainers, with gains of 4.7%, 3.9% & 3.5% respectively. On the other hand, Nifty FMCG, Nifty Pharma & Nifty Healthcare Index had a marginal gain of 0.70%, 0.73% & 0.17% respectively.

• On the global front, Wall Street ended negative this week as strong economic data raised concerns that the interest rates may stay high for a longer period. This led Dow Jones registering a loss of (-) 2.3%, while S&P 500 had a marginal loss of (-) 0.7% & Nasdaq ended on a flat note. FTSE ended on a negative note impacted by the PMI figures revealing a slowdown in services activity and uncertainty ahead of general elections which led to a loss of (-) 1%.

• Domestic equity markets rose during the week after the RBI approved a massive, all-time high surplus transfer of around Rs. 2.11 lakh crore for FY24, boosting government revenues and supporting the fiscal deficit target.

• It is anticipated that the surplus transfer will enable the government to increase capital expenditures and reduce borrowing in FY25.

​​​​​​​

• Waning election-related anxiety along with the anticipation of political stability after the Lok Sabha elections further extended the gains.

​​​​​​​

• Bond yields decreased as the Indian government decided to continue pumping money into the banking system in the upcoming weeks after reducing the supply of Treasury bills. Gains were extended after the RBI approved a record surplus transfer of Rs. 2.11 lakh crore to the government for the fiscal year ended on Mar 31, 2024.

​​​​​​​

• Yield on the 10-year benchmark paper (7.10% GS 2034) fell by 10 bps to close at 7.00% from the previous week’s close of 7.10%.

​​​​​​​

• The RBI approved a dividend of Rs. 2.11 lakh crore for the Central government for FY24, which is approximately 141% more than the Rs. 87,416 crore paid out in FY23.

​​​​​​​

​​​​​​​

• According to the latest payroll data released by the Employees' Provident Fund Organization, there was a net addition of 14.4 lakh members in Mar 2024, of which 7.47 lakh were new members.

​​​​​​​

• According to the RBI’s provisional data, net foreign direct investment in India dropped sharply by 62.17% to $10.58 billion in the financial year ended Mar 31, 2024 from $27.98 billion in the previous 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