• Domestic equity markets rose for the third consecutive week as key benchmark indices S&P BSE Sensex and Nifty 50 closed positive. The rally was broad-based as the mid-cap and small-cap segments also closed the week in green with healthy gains.

• Domestic equity markets rose during the week supported by robust domestic manufacturing and services data of Mar 2024.

• According to the data, manufacturing PMI rose to 16-year high to 59.1 in Mar 2024 and services PMI also witnessed robust growth on the back of strong demand that spurred sales and business activity.
• Index heavyweight banking sector stocks significantly attributed to the gains following robust credit growth in Q4FY24.

​​​​​​​

• It was a lackluster week for global indices. US equities declined ahead of the monthly jobs data report. S&P 500 (US) Index^, Nasdaq and Dow Jones fell by (-) 2.1%, (-) 3.0% and (-) 2.0% respectively. UK markets were flat. FTSE registered marginal loss of (-) 0.3%. Asian markets were a mixed bag. Nikkei and Kospi were negative and lost (-) 3.4% and (-)1.2%. Hang Seng was positive and gained 1.4% whereas Shanghai Composite Index was flat with slight gains of 0.7%.

​​​​​​​

• Meanwhile, the RBI maintained the policy repo rate at 6.50% for the seventh consecutive time in its first bi-monthly monetary policy of FY25, without providing any clear signals on when rate cuts may begin.

​​​​​​​

• Bond yields rose following the surge in U.S. Treasury yields as stronger-than-expected manufacturing data of Mar 2024 in the U.S. trimmed rate-cut expectations by the U.S. Federal Reserve. Losses were extended after the RBI maintained its main lending rate and stance in its Apr 2024 monetary policy meeting as widely expected.

​​​​​​​

• Yield on the 10-year benchmark paper (7.18% GS 2033) rose by 6 bps to close at 7.12% from the previous week’s close of 7.06%.

​​​​​​​

• The Monetary Policy Committee (MPC) in its first bi-monthly monetary policy review of FY25 kept key policy repo rate unchanged at 6.50% with immediate effect for the seventh consecutive time. The standing deposit facility (SDF) rate also remained unchanged at 6.25%. The MPC also remained focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.

​​​​​​​

• According to the RBI, CPI inflation is projected at 4.5% for 2024-25 with Q1 at 4.9%, Q2 at 3.8%, Q3 at 4.6% and Q4 at 4.5%, with the risks are evenly balanced.

​​​​​​​

• According to the RBI, real GDP growth for 2024-25 is projected at 7.0% with Q1 at 7.1%, Q2 at 6.9%, Q3 at 7.0% and Q4 at 7.0%, with the risks are evenly balanced.

​​​​​​​

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.