As many as 33 stocks in the Nifty 50 index delivered a positive return for investors in the week. With a gain of 7.7 per cent, Apollo Hospitals emerged as the top gainer in the index Indian markets posted marginal gains in the passing week as strong domestic macroeconomic data supported sentiments. However, worries about a possible global recession and profit booking kept the gains in check.
Markets made an optimistic start to the week as traders took encouragement with World Economic Forum (WEF) President Borge Brende’s statement that India is expected to clock the highest growth among the world’s big economies this year and the country’s economy is witnessing the ‘famous snowball effect’ that will lead to more investments and more jobs. While the National Sample Survey Office (NSSO) data showed that the unemployment rate for persons aged 15 years and above in urban areas declined to 6.8 per cent during January-March 2023 from 8.2 per cent a year ago.
However amid a gloomy global outlook, strong GDP numbers also failed to cheer traders as India’s economic growth shot up by 6.1 per cent in the March quarter of FY23, beating the street’s expectations, as the expansion in manufacturing and construction surprised on the upside, reflecting sustained strength in domestic demand.
Global investment bank JPMorgan in a report marginally increased its 2024 economic forecast for India from 5 per cent to 5.5 per cent, saying the country’s growth will be affected by a slowdown in global growth momentum. “Global growth momentum is still expected to slow in the coming quarters and, domestically, the impact of monetary policy normalization will be felt with a lag,” JPMorgan said. These signals led the BSE Sensex to gain 45 points, or 0.1 per cent, at 62,547 during the week ended June 02, while the Nifty jumped 35 points, or 0.2 per cent, to 18,534.
Market Macros: Vinod Nair, Head of Research at Geojit Financial Services said that during the week, the Indian market was volatile, however, it was able to regain the momentum led by positive domestic outlook accompanied by global cues. “Auto stocks garnered attention as sales numbers for May came in strong, with a sequential recovery boosting sentiment across the sector”. The hope that the Fed will refrain from a rate hike has provided comfort to the global equity market,” Nair said.
As many as 33 stocks in the Nifty 50 index delivered a positive return for investors in the week. With a gain of 7.7 per cent, Apollo Hospitals emerged as the top gainer in the index. It was followed by Hero MotoCorp (5.3 per cent), Mahindra & Mahindra (4.6 per cent), Titan Company (4.3 per cent), and Asian Paints (3.5 per cent). Tata Motors, Sun Pharma, Hindustan Unilever, Bharti Airtel, and Nestle India also advanced by over two per cent. On the other hand, Oil & Natural Gas Corporation, Coal India, and Reliance Industries declined 5.5 per cent, 4.3 per cent, and 2.1 per cent, respectively.
Sector-wise, the BSE Realty index surged the most (3.9 per cent) during the week gone by. While BSE Healthcare and BSE Auto indices have registered a weekly gain of 2.2 per cent, and 1.9 per cent, respectively. On the other hand, BSE Oil & Gas has registered a weekly decline of 3.1 per cent.
Technical Outlook for next week: Rupak De, Senior Technical at LKP Securities said, the Nifty experienced another session of range-bound trading without significant movement. It has been consolidating, or trading within a narrow range, for the past few days. “The Relative Strength Index (RSI) has shown a bearish crossover, indicating a potential downturn in prices. The overall sentiment in the market is expected to remain sideways, indicating a lack of clear direction in the near term”. The Nifty is likely to find support at the levels of 18450-18500, while resistance levels are anticipated at 18650 and 18800, he said.