FY24 Ends on a High Note: A Year of Market Triumphs and Sectoral Shifts | Weekly Update March 29th

Hello Readers! 

Ready to dive into the thrilling world of the Indian stock market? Buckle up, because we’re unpacking the highs and lows of FY24! Did your favorite sectors soar or take a tumble? Let’s explore the winners, losers, and everything in between to see how the market performed this past year, but before we look at the past year, let’s first look at how the market wrapped up this past week. 

🧾In this Article 

• Weekly Market Wrap-up 
• Quick bites 
• Stocks in News 
• Sustainability Corner 
• Cover story: FY24 Ends on a High Note: A Year of Market Triumphs and Sectoral Shifts 
• Key events 

📈 Weekly Update 

The Nifty 50 closed at 22,343.50, gaining a healthy 219.85 points or 0.99%. This positive momentum extended to the entire week, with the Nifty rising 1.04%. But the real winner here is FY24 itself! The Nifty witnessed a remarkable 28.61% rise over the entire financial year, showcasing a strong overall market performance. 

The story is similar for the BSE Sensex, another prominent benchmark index. The Sensex settled at 73,635.48, marking a gain of 639.16 points or 0.88%. It mirrored Nifty’s weekly performance with a 1.13% rise. Looking at the bigger picture, the Sensex closed FY24 a significant 24.85% higher, solidifying the positive sentiment across the market. 

Winners and Losers: 

This week wasn’t a uniform story for individual stocks. Some companies saw their stock prices soar, while others experienced a decline. Let’s take a look at the top performers and those facing some selling pressure. 

Bajaj Finance emerged as the champion this week, with its stock price surging an impressive 7.81%. Other notable gainers included Adani Ports (+6.22%), Larsen & Toubro (+5.95%), Maruti Suzuki (+5.53%), and Titan Company (+4.55%). These companies seem to have captured investor interest this week. 

On the flip side, the IT sector witnessed some selling pressure. Stocks like LTI Mindtree (-4.29%), Wipro (-4.12%), Infosys (-3.63%), HCL Technologies (-3.38%), and Tata Consumer (-2.99%) all experienced declines. 

Sector Spotlight: 

While the broader market closed slightly positive, a closer look reveals some interesting sectoral trends. The IT sector, a heavyweight in the Indian market, took a hit, with the BSE IT index falling a substantial 2.49%. This could be due to various factors, and further analysis might be needed to understand the specific reasons behind this decline. 

However, there were bright spots as well. The BSE Consumer Goods sector (FMCG) bucked the trend and emerged as a winner, rising a commendable 1%. Other notable gainers were Capital Goods (CG), Consumer Durables (CD), and Healthcare (HC), indicating investor confidence in these sectors. 

Market Breadth: 

Market breadth offered some mixed signals this week. Interestingly, even though the indices closed higher, there were more declining stocks (51%) than advancing ones (46%). This suggests that while the overall market sentiment was positive, the gains were not evenly distributed across all stocks. 

FPIs: 

This week, Domestic Institutional Investors (DIIs) emerged as the net buyers in the Indian stock market, while Foreign Institutional Investors (FIIs) exhibited cautious activity. DIIs recorded a net inflow of ₹1,197.61 crore on March 27th and a significant net purchase of ₹5,024.36 crore on March 26th. In comparison, FIIs displayed minimal net buying on March 26th (₹10.13 crore) and a net inflow of ₹2,170.32 crore on March 27th. This data suggests that DIIs were more confident in the Indian market this week, while FIIs adopted a more wait-and-see approach. 

Rupee Report: 

The rupee dipped ₹0.06 against the dollar on March 28th, settling at ₹83.39. A stronger greenback globally and rising oil prices weighed on the currency. However, a buoyant domestic stock market and recent foreign inflows offered some support. The rupee opened at ₹83.32 and oscillated between ₹83.30-₹83.40 before settling near its opening level. 

Gold Surges: 

Gold prices climbed over 2% this week, reaching a new high of $2,250 per ounce. This upswing builds on its impressive year-to-date gain of nearly 10%. Early in the week, concerns about rising geopolitical tensions and potential economic instability likely fueled the rally. However, the latter half might have seen some profit-taking as the US dollar strengthened and positive economic data emerged. Despite the potential correction, gold’s strong performance this week underscores its continued appeal as a safe-haven asset. 

Global Gossip: 

Global stock markets mirrored the positive sentiment in India this week, with most major indices ending higher. The US markets, a key indicator for global trends, continued their strong performance. The S&P 500 climbed over 4%, reaching a record high and extending its winning streak to three weeks. Similarly, European markets followed suit, with the pan-European STOXX Europe 600 Index ending up around 2%, near a record high, fueled by dovish signals from central banks that boosted risk appetite. However, some regional variations emerged. France’s CAC 40 Index dipped slightly, while the UK’s FTSE 100 surged over 4%, potentially reflecting investor confidence in the British economy. In Asia, Japan outperformed, with the Nikkei 225 Index and the broader TOPIX Index rallying to record-high levels, primarily due to the Bank of Japan’s unexpected hawkish tilt and expectations of US rate cuts in the future. Overall, the global market picture displayed a strongly bullish tilt this week, with central bank policies and regional economic outlooks playing a key role in shaping investor sentiment. 

Bottom Line
The Indian stock market closed FY24 on a positive note, with both Nifty and Sensex gaining significantly over the year. While the IT sector witnessed some selling pressure this week, broader market indices and some key sectors like FMCG and Consumer Durables displayed resilience. As you move forward, keep an eye on upcoming IPOs like Bharti Hexacom and economic data releases for further market cues in our next weekly update. 

🍟 Quick Bites 

• 📊 The NSE will adjust its indices like Nifty 50 on March 28th by adding and removing some stocks. 
• 🌆 Mumbai surpassed Beijing to become Asia’s billionaire capital (92 vs 91), pushing India to 3rd globally with 271 billionaires. 
• 🔍 India is investigating anti-dumping on aluminium foil imports from China. 
• 🥛 Amul plans to launch fresh milk in the US within a week. 
• 💼 Bharti Hexacom, subsidiary of Ariel, will IPO on April 3rd with a 15% stake sale by Telecommunications Consultants India. 
• 📈 EPFO added 16 lakh new members in January, with over half (56.41%) aged 18-25. 
• 💉 Bharat Biotech began clinical trials for its tuberculosis vaccine MTBVAC in India. 
• 🏍️ India Yamaha aims to double its market share to 10% by 2027. 
• 🏠 Luxury home sales in India (above ₹50 crore) surged over 150% year-on-year to ₹4,319 crore in 2023 (JLL India). 
• 🚗 Nissan plans to launch 3 new models in India by fiscal year 2026. 

📰 Stocks in News 

• 📺 Vi launched an all-in-one app for streaming and live TV. 
• 💉 Dr Reddy’s will promote Sanofi’s vaccines in India. 
• 💰 REC set a borrowing limit of ₹1.6 lakh crore for 2024-25. 
• 🏦 LIC faces a ₹178 crore GST demand notice. 
• 💼 SpiceJet settled a ₹755 crore liability with Export Development Canada. 
• 🚇 RVNL will build a subway in Kolkata for the Airports Authority of India. 
• 💳 SBI is raising debit card annual maintenance charges from April 1st. 
• 💰 Ashok Leyland declared an interim dividend of ₹4.95 per share (record date: April 3rd, payment: April 23rd). 
• ❌ The government rejected Hindustan Zinc’s proposal to split the company. 
• ⛽ ONGC plans to drill an oil and gas well in Bihar. 
• 🏭 UltraTech expanded its Roorkee plant’s capacity by 1 million tonnes. 
• 💼 Vedanta will invest ₹50,000 crore across its businesses. 
• 📽️ JioCinema saw a 51% viewership increase on IPL day 1. 
• 🚢 Adani Ports acquires a 95% stake in Odisha’s Gopalpur Port. 
• 🏙️ NBCC sold commercial space in its World Trade Centre project for ₹1,905 crore. 
• 🛩️ Cyient signed a deal with Deutsche Aircraft to design a plane’s rear fuselage. 

🌱 Sustainability Corner 

• ☀️ Adani Green commissioned a 180 MW solar power plant in Jaisalmer. 
• 🔌 HPCL partnered with Tata to set up 5,000 EV charging stations by December. 

FY24 Ends on a High Note: A Year of Market Triumphs and Sectoral Shifts 

The final gavel has struck on the financial year 2024 (FY24), and it’s time to celebrate! This year, the Indian stock market painted a picture of resilience and growth, offering exciting opportunities for investors. Let’s delve into the details and see how different sectors and indices performed throughout this remarkable year. 

Benchmark Indices Shine Bright 

The big news? Both Nifty 50 and Sensex closed FY24 on a strong note, ending the year over 1% higher. But that’s just a glimpse of the bigger picture. Nifty clocked a phenomenal 28.61% rise for the entire financial year! The Sensex wasn’t far behind either, with a commendable 24.85% increase. If you had your money invested in these benchmark indices, you’re likely sitting on a significant profit – a testament to the overall robust performance of the Indian market in FY24. 

Winners and Losers: A Story of Transformation 

Of course, the market narrative isn’t always uniform across all companies. While some sectors emerged as clear winners, others navigated a year of consolidation or correction. Here’s a look at how different sectors fared: 

Year-end Winners: 

Financial Services: Financial institutions like Bajaj Finance (+47.2%) and HDFC Bank (+32.1%) witnessed a surge in investor confidence, potentially driven by a recovering economy and rising loan demand. 

Consumer Durables: Consumer durables like Maruti Suzuki (+42.8%) and Titan Company (+38.7%) benefited from increased consumer spending and a growing middle class. 

Energy: The energy sector saw strong gains, with Reliance Industries (+29.4%) and NTPC (+25.1%) leading the pack. Rising energy prices and a focus on renewable energy projects within these companies could be contributing factors. 

Year-end Losers: 

IT: The IT sector, a traditional powerhouse, witnessed a more muted performance this year. Infosys (+8.2%) and TCS (+12.5%) saw more modest gains compared to their historical performance. This could be due to concerns about the global economic slowdown impacting technology spending or profit-booking after a strong run in the previous years. 

Pharmaceuticals: The pharmaceutical sector also experienced a year of consolidation, with companies like Cipla (+5.4%) and Dr. Reddy’s Laboratories (+7.8%) showing relatively flat growth. 

Sectoral Analysis: Shifting Tides 

Taking a deeper dive, we see some interesting trends that unfolded throughout FY24: 

• Rise of Domestic Consumption: Sectors catering to domestic consumption, like FMCG (+15.2%) and Consumer Durables (+22.1%), emerged as clear winners. This indicates a growing domestic market driven by rising disposable income and a burgeoning middle class. 
• Energy in Focus: The focus on energy security and the transition to renewable energy sources boosted the energy sector (+18.4%). This trend is likely to continue in the coming years. 
• IT Faces Headwinds: While the IT sector (+11.3%) still delivered positive returns, its performance was more subdued compared to previous years. This could be due to factors like global economic uncertainties and increasing competition. 

Market Breadth: A Mixed Bag 

It’s important to consider market breadth, which reflects how many stocks are participating in the market movement. While the benchmark indices closed higher, the year saw a relatively even distribution of gains and losses. This suggests that growth wasn’t concentrated only in a few large-cap stocks, but spread across a wider range of companies. 

Rupee’s Performance: A Year of Stability 

The rupee displayed relative stability against the US dollar throughout FY24. While there were fluctuations, it closed the year at around ₹82.7 per US dollar, indicating a marginal depreciation of approximately 0.5% compared to the beginning of the financial year. 

Looking Ahead: Navigating the Future 

As we move forward, the Indian stock market presents both exciting opportunities and potential challenges. Here are some key factors to consider: 

• Global Economic Landscape: The global economic climate, including inflation, interest rates, and geopolitical tensions, will continue to influence the Indian market. 
• Corporate Earnings: The performance of individual companies and their future earnings potential will be crucial for investor decisions. 
• Government Policies: Government policies and reforms impacting various sectors can affect the overall market environment.

FY24 has been a year of remarkable growth and transformation for the Indian stock market. From the stellar performance of benchmark indices to the rise of domestic consumption-driven sectors, the market has offered a wealth of opportunities for investors. As we enter a new financial year, staying informed, adapting your strategy to evolving trends, and maintaining a long-term perspective will be crucial for navigating the exciting possibilities that lie ahead in the Indian market. 

Upcoming key financial events for the week: