Sensex Soars to 80,000: Buckle Up for the Ride Ahead! | Weekly Update July 6th

Hello Readers! 

Sensex breached the 80k mark for the first time in its history – and Indian investors are on a high.  But what does this mean for you? Will the markets continue to be on the bull run or is a correction waiting ahead? Should you invest at these levels or is it time to be cautious? Learn how to navigate this exciting (and potentially volatile) market, even if you’re new to investing. But first, let’s look at all that happened in the market this past week! 

🧾In this Article 

Weekly Market Wrap-up 

Quick bites 

Stocks in News 

Sustainability Corner 

IPO corner 

Cover story: Sensex Soars to 80,000: Buckle Up for the Ride Ahead! 

Key events 

📈 Weekly Market Wrap-up 

Indian markets defied gravity this week, notching their best six-week winning streak in recent memory!  Both the SENSEX and NIFTY continued their upward climb, with the SENSEX surging a robust 1.22% to reach a new high, shying away just 3.4 points from the 80k it touched during the week, to close at 79,996.6. The NIFTY added 313.25 points during the week and finally closed at 24,323.85, up 1.3%. 

Despite the Friday jitters, where both indices experienced a temporary dip, it was a great week for Indian equities. The Sensex 30 and Nifty 50 both hit new peaks, but market experts and analysts are cautiously optimistic, especially considering the outperformance of the broader mid-cap and small-cap sectors.  

Sector Spotlight 

This week, IT stocks were the clear winners, with the BSE IT index skyrocketing to nearly ₹38,500, a jump of over 4.15%. That’s a big boost for tech companies! Healthcare (BSE HC) and Consumer Goods (BSE CG) managed to stay positive, both rising over 3% and reaching prices near ₹38,250 and ₹75,100 respectively. The FMCG (Fast Moving Consumer Goods) sector also climbed, reaching almost ₹21,000, with a gain of nearly 2% or over 377 points.  On the other hand, the Consumer Durables sector (BSE CD) wasn’t as fortunate, dipping slightly to hover around ₹58,700, a decrease of 0.2%. 

Nifty 100 top gainers and losers 

 Top Gainers: 

• Bajaj Holdings: ₹9,670 (+13.37%) 

• REC Ltd: ₹580.35 (+10.47%) 

• Power Fin Corpn: ₹534.05 (+10.1%) 

• IRFC: ₹188.3 (+8.37%) 
• Zydus Lifesci: ₹1,160 (+7.97%)

Top Losers: 

• Titan Company: ₹3,269.3 (-4.02%) 

• Pidilite Inds: ₹3,091.8 (-2.08%) 

• IndusInd Bank: ₹1,433.8 (-2.05%) 

• Adani Green: ₹1,753 (-1.96%) 

• HDFC Bank: ₹1,650.7 (-1.95%) 

FPI and DII Activity: 

Over the past week, Foreign Institutional Investors (FIIs) were net buyers in the Indian stock market.  While they sold ₹426.03 crore and ₹2,000.12 crore on July 1st and 2nd respectively, their buying on subsequent days outweighed the selling.  Total FII buying amounted to ₹5,483.63 crore on July 3rd and ₹2,575.85 crore on July 4th, for a net inflow of approximately ₹6,583.23 crore. 

In contrast, Domestic Institutional Investors (DIIs) were net sellers this week. Their buying on July 1st (₹3,917.43 crore) and July 2nd (₹648.25 crore) was surpassed by their selling on later days. Total DII selling amounted to ₹924.43 crore on July 3rd and ₹2,375.18 crore on July 4th, resulting in a net outflow of about ₹2,434.33 crore. 

Global Gossip: 

This week presented a mixed bag for global markets. The US markets painted a generally positive picture, with the S&P 500 and Nasdaq gaining over 1% each, reflecting bullish sentiment. The Dow Jones also edged slightly higher in neutral territory.  However, European markets struggled. Both the German DAX and the British FTSE ended the week on a bearish note, dipping over 2% and 0.8% respectively.  In Asia, the story was divided. Japan’s Nikkei 225 surged nearly 4%, reflecting optimism.  In contrast, the Hang Seng in Hong Kong closed slightly lower, continuing a bearish trend. Overall, this week highlighted the regional variations in global markets. 

Rupee Report: 

The Indian rupee started stronger against the US dollar on Friday, likely due to a decline in global crude oil prices. It opened at ₹83.47 per dollar, compared to Thursday’s closing of ₹83.50 but was down 0.1% week-on-week. 

Gold Surges: 

As of July 5th, gold was trading at a hefty ₹72,800 per 10 grams. This rise reflects a global trend, with spot gold prices also hitting $2,358 an ounce. Interestingly, some markets saw a dip on Thursday, but gold seems to be defying the trend and continuing its upward climb. 

🍟 Quick Bites 

 ⚡ India’s power consumption rose by almost 9% year-on-year to 15,238 crore units in June. 

🎁 The US announced a new $2.3 billion package for Ukraine, including key air defence and anti-tank weapons. 

💵 Bezos will sell $5 billion in Amazon stock. 

✈️ Jet fuel price has increased by 1.2%, while commercial LPG price has been reduced by ₹30 per 19-kg cylinder. 

🥛 Karnataka Milk Federation (Nandini) has achieved a milestone of procuring 1 crore litres of milk a day from farmers. 

⛏️ India’s coal production rose 14.49% year-on-year to 846.3 lakh tonnes in June 2024, compared to 739.2 lakh tonnes in June 2023. 

🚗 The European Union has imposed extra provisional duties of up to 38% on Chinese electric car imports citing ‘unfair’ state subsidies. 

🏢 AstraZeneca India will invest ₹250 crore to expand its technology centre in Chennai. 

🔍 Sebi intensified market regulation with surprise inspections, including examining mobile devices of top executives at five of the top ten mutual funds in the past year. 

💵 India’s inclusion in JPMorgan’s emerging markets bond index could bring billions in foreign investment, with over $400 billion in government bonds receiving a 10% weighting. 

Stocks in news: 

💰 LIC strengthens its hold on IDFC First Bank with a ₹1,500 crore additional stake purchase.  

🤵 Raymond separates its booming real estate business through a demerger. 

🤝 Patanjali Foods will buy Patanjali Ayurved’s home and personal care business for ₹1,100 crore. 

📉 NMDC’s iron ore production for June fell 3.2% year-on-year to 3.37 metric tonnes. 

🎥 PVR Inox opened a new 4-screen cinema at Prism Mall in Hyderabad. 

🚗 Nissan Motor India has exported over 11 lakh vehicles. 

⚒️ Coal India’s coal production rose 8% to 1,893 lakh tonnes in the April-June quarter. 

🏦 REC sanctioned ₹1.13 lakh crore worth of loans during April-June FY25, a year-on-year growth of 24.17%. 

📜 Piramal Enterprises approved a bond issue of ₹30 crore, along with a greenshoe option of up to ₹150 crore. 

🩺 Thyrocare acquired Polo Labs’ diagnostic and pathology business for ₹4.26 crore in cash. 

🤝 Persistent Systems acquired New Jersey-based Starfish Associates for an undisclosed amount. 

❌ Zomato Financial Services has withdrawn its application for an NBFC license. 

💡 HCL Tech has partnered with IBM to train its employees in IBM’s Gen AI technology. 

🏡 Godrej Properties sold homes worth around ₹3,150 crore on the launch of its new residential project in Whitefield, Bengaluru. 

📈 CDSL announced a 1:1 bonus issue of shares and fixed the record date for the final dividend of FY24 as 16 July. 

🗳️ Zomato shareholders have approved expanding ESOPs to 1830 lakh shares, resulting in a 2% dilution for existing shareholders. 

🚢 Adani Ports reported a 7.5% year-on-year increase in total cargo volume for the April-June quarter and a 12% rise in June. 

🏦 UCO Bank reported a 17.8% year-on-year rise in gross advances and a 7.4% rise in total deposits in the April-June quarter. 

💊 Alembic Pharmaceuticals received USFDA approval for its Ivosidenib Tablets, a 250 mg cancer treatment. 

🛵 Bajaj Auto launched the world’s first CNG-powered two-wheeler, the Freedom 125, under its separate Bajaj brand. 

🏦 Bank of Maharashtra reported a 19% year-on-year rise in gross advances and a 9.4% rise in total deposits in the April-June quarter. 

💊 Zydus Lifesciences got a tentative US FDA approval for a hypertension drug. 

📊 Bajaj Finance reported a 31% year-on-year increase in assets under management (AUM) and a 26% rise in total deposits for the April-June quarter. 

🚇 RVNL signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation (DMRC) for projects in India and abroad. 

🏫 NBCC signed an MoU with NIT Patna for an incubation centre worth around ₹36 crore. 

💹 HDFC Bank’s gross advances increased 15% year-on-year in the April-June quarter, excluding the impact of the merger with HDFC. 

🌱 Sustainability Corner 

• 🔋 JSW Energy signed a power purchase agreement with SJVN for a 700-megawatt solar project in Rajasthan. 

• 🚗 M&M has selected ABB India’s PixelPaint technology for its new electric vehicle paint facility. 

• 🚗 Volkswagen launched its first pre-owned car store in Tamil Nadu. 

IPO corner 

Listings: 

•  🥃 Allied Blenders & Distillers’ Mainline IPO on 1st July 2024 was listed at ₹281 per share, oversubscribed by 23.49 times. 

• 💼 Nephro Care India’s SME IPO on 5th July 2024 was listed at ₹90 per share, oversubscribed by 666.56 times, raising ₹41.26 crore. 

• 💻 Diensten Tech’s SME IPO on 3rd July 2024 was listed at ₹100 per share, oversubscribed by 50.24 times, raising ₹22.08 crore. 

• 🏗️ Vraj Iron & Steel’s Mainline IPO on 3rd July 2024 was listed at ₹207 per share, oversubscribed by 119.04 times, with a 21.74% retail quota and a 7.92% employee quota, raising ₹170.00 crore. 

• 🌐 Akiko Global Services’ SME IPO on 2nd July 2024 was listed at ₹77 per share, oversubscribed by 33.97 times, raising ₹23.11 crore. 

• ⛽ Petro Carbon and Chemicals’ SME IPO on 2nd July 2024 was listed at ₹171 per share, oversubscribed by 83.78 times. 

Subscription updates: 

• 📈 Emcure Pharma IPO has been subscribed 67.87 times, with retail subscription at 7.36 times  

• 📈 Bansal Wire IPO has been subscribed 62.76 times, with retail subscription at 14.37 times. 

Upcoming SME IPOs: 

• Sahaj Solar Limited IPO – 11th to 15th July 

IPO News: 

• The National Stock Exchange (NSE) has urged Sebi to reconsider its IPO stance, noting in a Delhi High Court affidavit that seven years have passed since the initial offer document was filed and over five years since Sebi returned the application, calling for a “fresh view” based on current circumstances. 

• The Draft Red Herring Prospectus (DRHP) of VL Infraprojects Limited has been approved by the National Stock Exchange (NSE), paving the way for the company’s initial public offering (IPO) on the NSE SME Emerge Platform, with a proposal to launch up to 44,10,000 company shares at a face value of ₹10 per equity share. 

• Reliance Jio, owned by Mukesh Ambani, may launch India’s biggest ever IPO, potentially exceeding Rs 55,500 crore and surpassing LIC’s record-breaking Rs 21,000 crore offering. 

• NTPC Green Energy confirmed plans for an IPO earlier this year, targeting a 10-20% stake sale. 

Sensex Soars to 80,000: Buckle Up for the Ride Ahead!  

Pop the champagne corks! The Indian stock market just witnessed a landmark moment – the Senses crossed a whopping 80,000! This is fantastic news for investors, and it signifies a period of significant growth for the Indian economy. But hold on a sec, before you dive headfirst into investing everything you have, let’s take a breather and understand what this means for you, the savvy investor. 

First, what exactly is the Sensex? 

Think of it as a celebrity gossip magazine for the stock market. It tracks the performance of the top 30 companies listed on the Bombay Stock Exchange (BSE). If these companies are doing well, the Sensex goes up, and vice versa. So, a Sensex at 80,000 indicates that these leading companies are collectively performing exceptionally well. 

But what caused this phenomenal rise?  

Buckle up, because it’s a mix of factors. Firstly, the Indian economy itself is on a roll. Government initiatives, a growing middle class, and a booming digital sector are all contributing to this positive momentum. Secondly, foreign investors are taking notice. They see India as a stable and lucrative investment destination, which is pumping more money into the market. 

Now, the big question: what does this mean for you?  

Well, it’s a positive sign! A rising Sensex generally indicates a healthy market environment, which could potentially translate into good returns on your investments. Here’s the catch – the stock market is like a roller coaster. There will be ups and downs, so don’t expect a smooth ride to riches. 

So, what should you do? Here are some smart moves to consider: 

• Don’t get carried away by the hype. Remember, past performance doesn’t guarantee future results. Just because the Sensex is at 80,000 today doesn’t mean it will keep climbing forever. 

• Do your research! Don’t blindly jump on the bandwagon. Invest in companies you understand and believe have strong fundamentals. Research their financials, future. plans, and industry trends. 

• Consider your risk appetite. Are you comfortable with some volatility, or are you a more conservative investor? There are different types of investment options available, each with varying risk profiles. Choose what aligns with your financial goals and risk profiles. Choose what aligns with your financial goals and risk tolerance. 

Think of it like this: You wouldn’t buy a car based solely on its fancy paint job, right? You’d check the engine, the mileage, and see if it fits your needs. Similarly, investing requires careful evaluation before you commit your hard-earned money. 

Here are some resources to help you on your investment journey: 

• Financial advisors: These professionals can help you create a personalized investment plan based on your goals and risk tolerance. 

• Online investment platforms: Many platforms offer user-friendly interfaces and educational resources to help you make informed decisions. 

• Financial news and analysis websites: Stay updated on market trends and get insights from experts. 

Remember, knowledge is power! 

The more you understand the stock market, the better equipped you 11 be to make sound investment decisions. So, take advantage of the available resources, do your research, and invest wisely. The Sensex crossing 80,000 might just be the beginning of an exciting ride for the Indian economy, and you have the potential to be a part of it. 

 Upcoming key financial events for the week: