Nifty has its Worst Week in Months | Weekly Update May 11th

Hello Readers!

We hope your week has been better than that of Indian stock markets, which had its worst week in over 2 months. Sensex shed 1213 points this week, while Nifty was down over 420 points with Nifty even slipping under the 22,000-mark during the week spooking investors. Is it the elections, disappointment over results or geopolitical factors that’s causing this southward journey? Let’s have a look in this weekly Indian stock market newsletter!

🧾In this Article

Weekly Market Wrap-up

Quick bites

Stocks in News

Sustainability Corner

IPO corner

Key events

📈 Weekly Market Wrap-up

This week, both the Sensex and Nifty ended in the red, with the Sensex falling 1.64%, by 1213.68 points, to 72,664.47 and the Nifty dropping 1.87%, by420.65 points, to 22,055.2.  Overall, among the Nifty 50 stocks, only 12 stocks managed to end the week in green, one stock unchanged while the rest ended the week in green. Bank Nifty also took a beating, ending the week 3.07% down.

This downturn was driven by a combination of factors including uncertainty related to national elections, ongoing foreign selling, mixed fourth quarter earnings (Q4) , higher valuations and escalating geopolitical tensions.

The mid- and small-cap stocks were hit hardest amidst this downturn, facing intense selling pressure. The Nifty SmallCap index plummeted 4.9% during the week while the Nifty Midcap was down 2.75% in the same period. This comes after a strong April for both segments, when they outperformed the broader Nifty 50.

This year the market volatility kicked in quite early before elections, with a rise seen in implied volatility since February 2024.

Winners and Losers: This week’s market saw some significant gains and losses. Here’s a look at some of the top performers and losers:

Winners

Marico up a whopping 13.33%, closing at ₹585.75.

Hero MotoCorp: Share price surged 7.25% to ₹4876.6

ABB gained 7.22%, ending the week at ₹7182.15

Britannia Industries soared 6.82%, closing at ₹5068.6

Hindustan Unilever rose 6.39%, settling at ₹2357.1

Kotak Mahindra Bank up 5.38%, ending the week at ₹1630.5.

Losers

Power Finance Corporation fell 13.05% to ₹417.75.

Canara Bank down 12.34%, closing at ₹548.2.

SRF fell 11% to ₹2284.

Shriram Finance down 9.43% closing at ₹2344.35.

Punjab National Bank: dropped 8.8%, settling at ₹123.85.

Tata Power Co. down 8.77%, closing at ₹414.75.

Sector Spotlight:

Most sectors ended the week with losses barring a handful like Nifty FMCG (+1.85%), Auto (+1.36%) and Nifty IT (+0.08%). Among the worst performing sectors, Nifty PSUBANK topped the list, tanking 6.03% during the week, followed by Nifty Media (-4.25%), Nifty Energy (-3.65%) and Nifty Financial Services (-3.23%).

Rupee Report:

The rupee managed to eke out a small win against the US dollar this week, strengthening by 2 paise to close at 83.49.

Gold Surges:

After a rough couple of days, gold prices rebounded sharply on Friday, buoyed by a strong global trend and boosted by domestic demand for the Akshaya Tritiya festival. The yellow metal jumped a significant ₹950, crossing the ₹73,000 mark.

Global Gossip:

While the S&P 500 led the pack with a gain of 1.85%, Asian markets presented a mixed picture. Japan’s Nikkei surprisingly dipped 1.56%, while China’s Shanghai Composite managed a small gain of 0.01%. European markets also saw a mixed performance, with the FTSE 100 rising a more modest 0.62% and Germany’s DAX experiencing a slight increase of 0.46%.

The Bank of England left rates unchanged but hinted at potential cuts in June due to falling inflation. The Eurozone showed signs of recovery with a slightly positive GDP growth rate, emerging from a technical recession. Overall, markets are cautiously optimistic, with a focus on economic data to guide future central bank decisions.

Bottom Line

It seems like volatility in the market may be here to stay until the end of the elections and until the geopolitical tensions calm down. At such a time, it would be advisable to have a long-term approach while strategizing your trading decisions. Further, keep an eye on inflation data and any further pronouncements from the Federal Reserve, as these could impact market sentiment.

🍟 Quick Bites

⛽ Bitumen sales in India increased by 10% to 88 lakh tonnes in the financial year 2024, as per the Oil Ministry due to surge in the road construction ahead of elections.

💰 Systematic Investment Plan (SIP) investments reached an all-time high of ₹20,371.47 crore in April, reflecting a 6% rise from March.

🚗 Passenger vehicle sales in India witnessed a 27% year-on-year jump to 2,206,070 units in April, according to the Federation of Automobile Dealers Associations.

💸 A World Migration Report 2024 revealed India as the first country to receive over ₹10 lakh crore in remittances, with a total of ₹11 lakh crore received in 2022.

📈 The National Stock Exchange (NSE) will conduct a special trading session on May 18th to test their preparedness for unexpected incidents.

📱 Vivo holds the top spot in the Indian smartphone market with a 19% share, followed by Xiaomi (18.8%) and Samsung (17.5%) according to Counterpoint Research.

📺 Disney+ Hotstar saw a drop of 23 lakh paid subscriptions in the Jan-March quarter, bringing their total down to 3.6 crore.

🛍️ India’s FMCG sector experienced a 6.6% value growth in the Jan-March quarter, with rural consumption surpassing urban growth according to a NielsenIQ report.

📊 CDSL, India’s largest depository, opened a record 1.09 crore Demat accounts in the March quarter, pushing the total registered accounts to over 11.56 crore.

💹 Investments in Indian stock markets through promissory notes reached a six-year high in February 2024, amounting to ₹1.5 lakh crore according to SEBI data.

4QFY24 Results Roundup

🏦 SBI’s net profit surged 24% to ₹20,698 crore in Q1, with a ₹13.70 per share dividend declared.

⛽ BPCL’s net profit dropped 35% to ₹4,224 crore in Q1, but they announced a 1:1 bonus share issue and a ₹21 per share dividend.

⛽ HPCL’s net profit dipped 25% to ₹2,709.31 crore in Q1. They’ll issue 1 bonus share for every 2 held and pay a ₹16.50 per share dividend.

🏦 PNB’s net profit skyrocketed 160% to ₹3,010.27 crore in Q1, with a ₹1.50 per share dividend declared.

🌍 Airtel’s Africa business suffered a net loss of ₹9.1 crore in Q1.

🏍️ TVS Motor’s net profit increased 18% to ₹485.43 crore in Q1.

🏙️ DLF sold out its entire Privana West project in Gurgaon for a whopping ₹5,590 crore.

🏍️ Hero Moto’s net profit climbed 18% to ₹1,016.05 crore in Q1, with a ₹40 per share dividend announced.

🏗️ L&T’s net profit rose 10.3% to ₹4,396 crore in Q1, with a ₹28 per share dividend declared.

💹 BSE’s net profit saw a marginal increase (0.56%) to ₹106.90 crore in Q1, with a ₹15 per share dividend announced.

🎨 Asian Paints’ net profit inched up 1.34% to ₹1,275.3 crore in Q1, with a ₹28.15 per share dividend declared.

🏦 Canara Bank’s net profit jumped 18% year-on-year to ₹3,757 crore in Q1, with a ₹16.10 per share dividend declared.

💰 Muthoot Finance raised ₹4,875 crore ($650 million) through US dollar bonds.

🔩 Bharat Forge’s net profit increased by 78% to ₹227 crore in Q1. They announced a ₹6.50 per share dividend.

💡 JSW Energy’s net profit rose 22% to ₹345.3 crore in Q1. They declared a ₹2 per share dividend.

💡 Tata Power’s net profit increased by 11% to ₹1,046 crore in Q1. They announced a ₹2 per share dividend.

💰 Piramal Enterprises’ net profit rose to ₹137 crore in Q1. They declared a ₹10 per share dividend.

💊 Dr Reddy’s net profit rose 36% year-on-year to ₹1,307 crore in Q1. They announced a ₹40 per share dividend.

😊 Happiest Minds’ net profit rose 24.83% to ₹71.98 crore in Q1. They announced a ₹3.25 per share dividend.

💰 Hindustan Zinc announced an interim dividend of ₹10 per share for the financial year 2025.

🛣️ IRB Infra recorded a 45.1% year-on-year rise in net profit to ₹188.9 crore in Q1. They declared an interim dividend of ₹0.10 per share.

💍 Titan’s net profit recorded a 7% year-on-year increase to ₹786 crore in Q1, but EBIT margins fell to 11.1%. They announced a ₹11 per share dividend.

🍵 Tata Consumer’s Tata Starbucks India recorded lower sales growth of 12% year-on-year (to ₹1,218 crore) in the financial year 2024. It recorded an annual growth of 21.89% between FY17 and FY23.

🏦 Kotak Mahindra Bank recorded a 25% year-on-year increase in net profit to ₹5,302 crore in Q1.

🛢️ Marico recorded a 5% year-on-year increase in its consolidated net profit of ₹320 crore, compared to ₹305 crore around the same time last year.

📡 Dixon Technologies’ subsidiary has partnered with Nokia to develop and manufacture telecom products in India.

🌱 Sustainability Corner

🚗 Tata Motors committed to electric vehicle segment. At their quarterly earnings call, the company’s CFO PB Balaji says the company would meet its milestone of selling 1lac passenger EVs, despite missing the target in FY24.

🌬️ Adani Green signed a 20-year deal with the Sri Lankan government to develop 2 wind power stations, investing ₹3,337 crore ($442 million) for the projects.

🚲 E-cycle manufacturer EMotorad is setting up the world’s largest e-cycle factory in Pune, Maharashtra.

☀️ India surpassed Japan to become the world’s third largest solar power generator in 2023, as reported by Ember.

IPO corner

📈 Aadhar Housing IPO, open until May 10th, has garnered 1.48 times subscription overall, with retail subscription standing at 0.94 times.

💼 The Indegene IPO has received subscriptions 7.35 times overall, with retail subscriptions at 3.82 times.

💼 TBO Tek IPO, also open until May 10th, has seen an oversubscription of 4.15 times, with retail investors subscribing at a rate of 10.01 times.

🚀 Go Digit General Insurance IPO is set to commence on May 15th.

🔍 IRDAI imposes ₹1 crore penalty on Go Digit General Insurance, citing failure to disclose changes in conversion ratio of preference shares issued by its holding company, Go Digit Info Works Services (GDISPL), to Fairfax Group-owned FAL Corporation.

Upcoming key financial events for the week:

Date	Event
13-May-24	– INR CPI (YoY) (Apr)
14-May-24	– GBP Claimant Count Change
	– USD Core PPI m/m
	– USD PPI m/m
	– INR WPI Inflation (YoY) (Apr)
15-May-24	– USD Core CPI m/m
	– USD Core Retail Sales m/m
	– USD CPI y/y
	– USD Empire State Manufacturing Index
16-May-24	– USD Unemployment Claims