Week Gone by 24.05.24 : Markets hit life time high after quarter of consolidation !

During the week, the main indices set a new record breaching the 23,000 mark, while the volatility indicator continued to remain at elevated levels at 21.71 after almost doubling in the last one month. Nifty 50 surged 2.0% to close at 22,957 and VIX . The strong gains registered were a reaction to optimism of continuity of the majority party and RBI's dividend payout of Rs 2.11 lakh crores to the government. Contrary to last week, the broader market lagged behind to front line indices. The Mid Cap index rose by 1.1% while the Small Cap index rose by 0.08%.

Economy: RBI’s Dividend for FY24 at 2.11 Lakh cr was far higher than budgeted estimates of 1 Lakh Cr and 141% higher than the last year dividend.  HSBC Flash India composite Services Purchasing Managers' Index (PMI) climbed to 61.7 in May, up from 61.5 in April, the third-strongest growth in nearly 14 years.This strength was driven by services activity sharply rising to a four-month high. While HSBC Flash India Manufacturing PMI slipped from 58.8 in April to 58.4 in May still remains robust compared to historical standards.

The United States' initial unemployment claims for the week ending May 18th were 2.15 lakh, which was more than anticipated. Meanwhile, on Thursday, the S&P Global Services Purchasing Managers Index (PMI) for May reached a 12-month high of 50.9. Japan’s core CPI for April rose 2.2% marking a drop from the 2.6% increase in the prior month. Japan's manufacturing sector showed a positive surprise, expanding to 50.5 in May.

#Gainers4week - #Top3  

#COCHINSHIP +35.2% Impressive Q4 results, 560% YOY jump in net profits

#GRSE +34.6% Rallied sharply on back of positive surprise in quarterly results

#BDL +31.1% Share price soar post 2:1 stock split

#losers4week #Top3

#MEDANTA -16.7% Concerns over sluggish margin expansions due to Capex

#DELHIVERY -10.8% Share price drops post-Q4 results and ED resignation.

#GMMPFAUDLR -8.9% Weak Q4 results, profits fall by 14%

#Unlisted Space : #NSE shares rose after a healthy financial performance for the quarter and the year. It also announced a dividend of 90/share and bonus share of 4 for one held. As per media articles, prices have shot up to Rs 6,000 in retail markets. However large trades are taking place around 5,000-5,200 levels. 

Other unlisted stocks that are seeing action are Oyo, Waree energy, Vikram Solar, Orbis, HDB Financials, Tata Capital and Hero Fincorp.

 #Weekahead

While the markets remain at heightened volatility, large parts of elections phases are behind as well as the corporate results. Markets may start to focus on post election events like monsoon, rural recovery, 100 day action plan and expectations on budget.

On the economy front, India’s quarterly GDP figures, core industrial production will be eagerly watched by market participants. On the international front, a few major events to keep an eye on are the United States GDP, Euro Area Consumer confidence, EU inflation, China’s official manufacturing and non manufacturing PMI and Japan's unemployment.

#weeklymarketupdate #marketinsights #market2024