Nifty Surpasses 24,000 Mark: Weekly Market Analysis
Explore our detailed weekly financial report as the Nifty crosses the 24,000 mark, featuring insights on market trends, top gainers, and what investors should watch out for in the upcoming week.
The Nifty gained further ground through the week, surpassing the 24,000 mark and reaching new record highs. Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly report.
Soaring ever higher
- The bulls seized on the narrative of fundamental strength in India Inc and the economy, propelling the Nifty up by 2.2% over the week.
- This mirrored the trend followed by global indices like the S&P 500 and the Nasdaq, which also rocketed to all-time highs last week.
What gives?
- US inflation readings for May aligned with expectations and showed an improvement from April, which helped boost global indices.
- This data sparked optimism among some investors that the US Fed might start cutting interest rates as early as September.
- At home, the RBI governor’s confidence about 7.2% growth in the current financial year also boosted sentiment.
The big winner
- Ultratech Cement, which fell sharply the previous week, rebounded impressively to register a 9.3% gain last week.
- This came as the company announced a blockbuster deal to pick up a 23% stake in India Cement to counter Ambuja’s deal with Penna Cement.
- Read More: UltraTech Cements Market Dominance with Strategic Acquisition in India Cements
The losers
- Private banks such as IndusInd Bank had a lacklustre week, influenced by the RBI's ongoing scrutiny of project financing and lending standards, despite a decline in NPAs.
- Cipla also witnessed a ~4% drop over the week, as recurring USFDA observations regarding its manufacturing facilities caused concern among investors.
Meanwhile…
- Personal spending growth numbers in the US were marked down to an annualized 1.5% for the first quarter, down from an initial estimate of 2%.
- The UK economy showed higher-than-expected growth for the first quarter, making it the fastest growing economy in the G7.
Market Brief
Market Outlook
Our take
- Although macroeconomic indicators in India continue to be robust, we believe that the current market valuations may have already priced in these positives.
- Consequently, we expect the Nifty to exhibit rangebound behaviour in the upcoming week due to anticipated profit-booking, with a projected trading range of 23,700 to 24,300.
- Given the current market conditions, investors are recommended to be cautious and focus on accumulating quality large-caps in a staggered manner. Learn more in our article: Markets At All-Time High: Here's What Every Smart Investor Needs To Know
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