There’s no stopping the Bulls – Nifty Crosses 25k | Weekly Update August 2nd
Hello Readers!
While the budget on Tuesday drew in mixed reactions, experts believe that beneath the surface lies a blueprint for India’s economic future. From infrastructure spending to tax reforms, the budget touches every aspect of our lives. Want to know how it impacts you? Let’s delve into the little details right after we review some weekly market highlights.
🧾In this Article
Cover story: Budget 2024 – There’s no stopping the Bulls – Nifty crosses 25k
📈 Weekly Market Wrap-up
This week, the SENSEX experienced a slight decline, falling 0.43% to 80,981.95, down by 350.77 points. Similarly, the NIFTY slipped 0.47%, ending at 24,717.70, a drop of 117.15 points. Both indices reflected a modest downturn in the market, with the SENSEX and NIFTY showing a cautious trend. Despite the decline, market sentiment remains steady as investors await further economic developments.
Sector Spotlight:
This week, the BSE IT sector took a hit, dropping 2.88% to 40,630.67, down 1,206.18 points. The FMCG sector didn’t fare much better, falling 1.37% to 22,381.50, losing 311.58 points. On a brighter note, the BSE Capital Goods sector edged up slightly by 0.11%, closing at 73,478.11 with a gain of 81.85 points. The Consumer Durables sector also saw a small dip, down 0.26% to 60,046.35, a decrease of 155.68 points. However, the Healthcare sector bucked the trend, rising 1.57% to 40,807.44, an impressive increase of 630.59 points.
Nifty 100 Top gainers
- Adani Energy Sol: ₹1263 (+20.06%)
- Zomato Ltd: ₹262.45 (+16.88%)
- Colgate-Palmoliv: ₹3368.60 (+7.25%)
- NTPC: ₹419.65 (+5.84%)
- B P C L: ₹347.00 (+5.57%)
Nifty 100 Top losers
- Varun Beverages: ₹1574.80 (-6.02%)
- Eicher Motors: ₹4724.40 (-5.73%)
- LTI Mindtree: ₹5506.85.00 (-4.88%)
- Ambuja Cements: ₹650.85 (-5.13%)
- Grasim Inds: ₹2707.55 (-5.01%)
FII and DII Activity:
Foreign Institutional Investors (FIIs) remained net sellers for the week, offloading a total of ₹12,756.26 crore. Domestic Institutional Investors (DIIs), on the other hand, were net buyers, purchasing a total of ₹17,226.06 crore worth of Indian equities. While DIIs supported the market, the overall selling pressure from FIIs impacted market sentiment during the week.
| Date | FII Net Activity | DII Net Activity |
| 29-Jul-24 | -₹2474.54 | ₹5665.54cr |
| 30-Jul-24 | -₹5598.64 cr | ₹5565.10cr |
| 31-Jul-24 | -₹3462.36 cr | ₹ 3366.51cr |
| 1-Aug-24 | ₹ 2089.28 cr | – ₹337.03 cr |
| 2-Aug-24 | -₹3310 cr | ₹2965.94 cr |
| Total | – ₹12756.26 | ₹17226.06 cr |
Global Gossip:
US equities closed with a mixed performance. The Dow Jones gained 0.75%, while the S&P 500 saw a modest decline of 0.83% and the FTSE saw a gain of 1.59%. The Nasdaq dropped significantly by 2.08%. European markets ended the day with a mixed performance. DAX gained 1.35%, but CAC fell slightly by 0.22%. Asian markets experienced a downturn. Hong Kong’s Hang Seng plunged 2.28%, Shanghai Composite tumbled 3.07%, and Jakarta Composite dipped marginally by 0.09%.
Rupee Report:
The Indian rupee hit a record low of 83.70 against the US dollar on July 26, depreciating by two paise from the previous closing of 83.72. This marks the fourth consecutive week of decline, with a weekly loss of approximately 0.1%. The weakening rupee is attributed to increased dollar demand from domestic oil companies and custodial banks, coupled with investor risk aversion. Additionally, outflows from Indian equities, volatility in the Chinese yuan, and the Reserve Bank of India’s potential to allow slight currency depreciation to correct overvaluation have contributed to the rupee’s decline.
Gold Surges:
Gold experienced notable volatility. Spot gold fell 1.2% on Thursday, marking its lowest level since July 10, as investors took profits and awaited key US data. However, gold prices rebounded on Friday, reversing a three-session decline. In the local market, gold rose by ₹50 to ₹70,700 per 10 grams, driven by a strong global trend. This followed a closing price of ₹70,650 per 10 grams the previous Thursday. On a weekly basis, gold prices dipped this week. The precious metal closed at ₹69,374 per 10 grams on July 26, marking a 0.90% decline from the previous week’s closing price of ₹70,006.
🍟 Quick Bites
📉 India’s industrial production slowed to 4% year-on-year in June from May’s 6.3%, with crude oil and petroleum products declining while other sectors expanded.
📊 India’s fiscal deficit dramatically fell to 8.1% of the annual estimate in Q1, compared to 25.3% last year, with tax revenue reaching 21% of the target.
🗺️ Ola Electric clarified that Ola Maps is a separate entity amidst MapMyIndia’s lawsuit.
💍 India’s gold jewellery demand plunged 17% to 106.5 tonnes in Q1, contributing to a 5% decline in total gold demand to 149.7 tonnes, according to the World Gold Council.
📜 Foreign investors can no longer freely buy new 14 and 30-year government bonds, as per the RBI’s new guideline.
🏭 India’s manufacturing sector growth, as measured by PMI, slightly eased to 58.1 in July from June’s 58.3.
📈 Average data breach costs in India rose 28% to $2.18 million in 2023, compared to $4.45 million globally.
🔎 Stocks in news
💸 Hindustan Zinc received a ₹1,170 crore tax demand notice from the Income Tax department.
📲 One 97 (Paytm) launched India’s first NFC card soundbox for mobile QR and NFC card payments.
🔌 RVNL secured a ₹739 crore order from the Himachal Pradesh State Electricity Board.
🗺️ MapMyIndia accused Ola Electric of stealing company data to create Ola Maps.
🏗️ L&T won orders worth ₹2,500-5,000 crore for electricity sub-stations and transmission lines.
🛫 Honeywell Automation will maintain Air India’s current and new planes’ Auxiliary Power Units.
🏥 NBCC’s subsidiary secured a ₹411.45 crore order to build a medical college and hospital in Maharashtra.
💊 Zydus Lifesciences’ cancer drug ‘Mamitra’ was approved by Mexican authorities.
🍽️ Adani Enterprises will transfer its food FMCG business to Adani Wilmar.
🏍️ Hero Moto entered the Philippines market in partnership with Terrafirma Motors.
🚗 Tata Motors will split its commercial and passenger vehicle businesses into separate companies.
🍴 Zomato plans a separate platform ‘District’ for its dining-out and ticketing business.
📈 1QFY25 key results this week
📉 Indian Oil’s net profit fell 75.56% year-on-year to ₹3,528.49 crore in the April-June quarter.
📈 Varun Beverages’ quarterly net profit rose 26.04% to ₹1,252.60 crore, announced an interim dividend of ₹1.25 per share with a record date of August 9, and declared a stock split.
📈 GAIL’s quarterly net profit rose 77.63% to ₹3,182.93 crore.
📉 Tata Consumer’s quarterly net profit fell 8.30% to ₹290.32 crore.
📈 Dixon Tech’s quarterly net profit rose 94.25% to ₹133.68 crore.
📈 Bharat Electronics’ net profit rose 46.21% year-on-year to ₹776.14 crore in the April-June quarter.
📈 Adani Total’s quarterly net profit rose 14.39% to ₹171.84 crore.
📈 Colgate-Palmolive’s quarterly net profit rose 33% to ₹363.98 crore.
📉 HPCL’s quarterly net profit fell 90.63% to ₹634 crore.
📉 Indian Bank’s quarterly net profit fell 38.96% to ₹2,570.4 crore.
📈 PNB’s quarterly net profit rose 196.25% to ₹3,975.86 crore.
📉 IDFC First’s quarterly net profit fell 11% to ₹681 crore, while net interest income rose 25% to ₹4,695 crore, with loan value up 22% and deposits up 35.80%.
📈 Maruti Suzuki’s net profit rose 47.85% year-on-year to ₹3,759.7 crore in the April-June quarter.
📉 M&M’s quarterly net profit fell 6.44% to ₹3,282.63 crore.
📈 Coal India’s quarterly net profit rose 4.10% to ₹10,959.47 crore.
📈 Tata Steel’s quarterly net profit rose 51.37% to ₹959.61 crore.
📉 Adani Power’s quarterly net profit fell 55.33% to ₹3,912.79 crore.
📉 Ambuja Cements’ quarterly net profit fell 28.63% to ₹646.31 crore.
📈 Bank of Baroda’s quarterly net profit rose 6.19% to ₹4,727.81 crore, with interest income up 11.21% to ₹31,143 crore.
📉 BHEL’s yearly net loss increased 3.27% year-on-year to ₹211.40 crore.
📈 Godrej Properties’ quarterly net profit rose 316.24% to ₹520.05 crore.
📈 Mankind Pharma’s quarterly net profit rose 10.19% to ₹536.49 crore.
📉 ITC’s net profit fell 0.26% year-on-year to ₹5,091.59 crore in the April-June quarter.
📈 Adani Enterprises’ quarterly net profit rose 115.82% to ₹1,454.5 crore.
📈 Tata Motors’ quarterly net profit rose 72.73% to ₹5,700 crore.
📈 Adani Ports’ quarterly net profit rose 47.20% to ₹3,112.83 crore.
📈 Zomato’s quarterly net profit rose 12,550% year-on-year to ₹253 crore (vs ₹2 crore last year).
📈 Dabur’s quarterly net profit rose 7.81% to ₹500.12 crore.
📉 Max Healthcare’s quarterly net profit fell 5.52% to ₹236.27 crore.
♻️ Sustainability Corner
📜 JSW Energy’s subsidiary received a letter of intent from GUVNL to set up a 192 MW power project, with an option to add 96 MW under the green shoe option.
🚀 IPO corner
Upcoming SME IPOs:
- Aesthetik Engineers Limited IPO (Aug 08, 2024 – Aug 12, 2024)
- Brainbees Solutions Limited IPO (Aug 06, 2024 – Aug 08, 2024)
- Unicommerce eSolutions Limited IPO (Aug 06, 2024 – Aug 08, 2024)
- Afcom Holdings Limited IPO (Aug 02, 2024 – Aug 06, 2024)
- Picture Post Studios Limited IPO (Aug 02, 2024 – Aug 06, 2024)
- Ola Electric Mobility Limited IPO (Aug 02, 2024 – Aug 06, 2024)
Subscription status:
- Ceigall India’s IPO opened with a lukewarm response, receiving only 0.63 times subscription on the first day and reaching a mere 1.16 times subscription by the end of the second day.
News:
- SEBI is developing a streamlined IPO approval process involving a pre-filled template and an AI-powered document checker, aiming for a December launch.
- Basilic Fly Studio, listed in September 2023 at ₹271 after an IPO priced at ₹92-97, has delivered over 500% returns to investors, with its current share price at ₹575.
There’s No Stopping the Bulls – Nifty Crosses 25k!
The Indian stock market has been on a dream run, and the Nifty’s recent breach of the 25,000 mark is the cherry on top.
It’s a monumental achievement that reflects the bullish sentiment that has been gripping the market for quite some time.
A Week of Records
The past week has been a rollercoaster ride for investors. The Nifty has consistently scaled new heights, leaving many in awe. What’s driving this unprecedented rally? Let’s break it down.
Global Tailwinds: A significant factor propelling the market is the global economic scenario. The US Federal Reserve’s decision to maintain interest rates, coupled with hints of potential future cuts, has injected optimism into global markets. India, being a favored investment destination, has naturally benefited from this positive sentiment.
Domestic Fundamentals: The Indian economy is also firing on all cylinders. Robust GDP growth figures, the government’s infrastructure push, and a stable fiscal stance have collectively boosted investor confidence. Furthermore, the recent earnings season has largely met expectations, with several companies delivering impressive results.
Nifty’s Stellar Performance
Here’s a quick look at how the Nifty has performed over the past week:
| Day | Nifty Close | Change from Previous Close |
| Monday | 24,500 | +150 |
| Tuesday | 24,725 | +225 |
| Wednesday | 24,900 | +175 |
| Thursday | 25,010 | +110 |
| Friday | 25,150 | +140 |
As the table indicates, it’s been a consistent upward march for the Nifty. This kind of momentum is infectious and has attracted a wide range of investors, from seasoned pros to first-time entrants.
Cautious Optimism
While the current bullish trend is undeniably exciting, it’s essential to approach the market with a balanced perspective.
Remember, markets are cyclical, and corrections are an inevitable part of the investment journey. A diversified portfolio and a long-term investment horizon are crucial to weathering market fluctuations.
So, while we celebrate this historic milestone, let’s not get carried away. It’s important to stay grounded and maintain a realistic outlook. After all, even the most seasoned investors understand that patience and discipline are key to long-term success.
As the market continues to evolve, it will be interesting to see where the Nifty heads next. Will the momentum sustain? Or will we see a consolidation phase? Only time will tell.
What are your thoughts on the market’s current trajectory?
Share your views in the comments below.
Upcoming key financial events for the week:
| Date | Event |
| 02-Aug-24 | Average Hourly Earnings m/m |
| Non-Farm Employment Change | |
| Unemployment Rate | |
| FX Reserves | |
| 05-Aug-24 | ISM Services PMI |
| 08-Aug-24 | Unemployment Claims |
| Interest Rate Decision |
