Weekly Recap: Nifty Hits Record Highs, Hindalco & Tech M Lead Gains
Markets saw a third consecutive week of gains, with Nifty rising by 0.5%. Discover the big stories, top-performing stocks and what lies ahead in this week's market update.
Markets gained for the third consecutive week, with Nifty rising by 0.5% compared to last Friday. 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.
Carrying On
- The indices started the week on a strong note, reaching record highs and ultimately closing 0.5% higher than last Friday’s levels.
- Within the broader market, the BSE Large-cap index gained 0.5%, the BSE Mid-cap index rose by 1.2%, while the BSE Small-cap index remained largely unchanged.
- Meanwhile, the India VIX (fear gauge) saw a significant drop of nearly 15%, marking its sharpest weekly decline since May, for reasons we get into later.
The Big Picture
- Investor sentiment was largely driven by expectations of a Fed rate cut in December and the potential for a Russia-Ukraine peace deal.
- At home, robust consumption growth in October, coupled with India Inc’s earnings growth prospects in the coming quarters, further supported positive market sentiment.
The Winners
- Hindalco Industries emerged as the top performer of the week, registering a 3.9% gain. The stock, along with several other metals players, benefited from news that the government is expected to soon announce safeguard duties on certain steel imports.
- Tech Mahindra closely followed with a 3.8% weekly return, driven by an earnings beat and positive broker coverage.
The Losers
- Adani Enterprises was the worst performer on the NIFTY 50, posting a 5.9% loss for the week, primarily due to its rights issue opening at a discount.
- Bharti Airtel also struggled, falling 2.8% following a significant block sale by a key promoter, Indian Continent Investment Ltd, marking what is seen as the third such sale in the past ten months.
Meanwhile…
- India’s GDP growth for the July-September quarter surged to 8.2%, well above the expected 7.3%, marking a six-quarter high.
- Alphabet reignited the AI rally last week, propelling the Nasdaq to its best performance since May. The company’s upgrade to its Gemini model, along with the launch of its own AI chips, played a key role in this boost.
Market Brief
Market Outlook
Our Take
- With the markets reaching record highs, investors may adopt a more cautious stance for the time being, awaiting clearer directional cues.
- Consequently, we anticipate a rangebound Nifty next week, with a projected trading range between 25,900 and 26,400.
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