Party Like It’s 2024: Nifty Scales New Heights, Market Cap Hits a Whopping $5 Trillion! | Weekly Update May 25th

Hello Readers!

We hope your week has been smoother sailing! This week, the Indian stock market has been a hot topic, with Nifty and Sensex captivating investors’ attention with their volatile swings but ending with highest gains in over 3-months. In this newsletter, we’ll dive right in, dissecting the market’s highlights and uncovering the potential factors behind the recent action. Buckle up, as we explore the market’s ups and downs, and what it all means for you.

🧾In this Article

Weekly Market Wrap-up
Quick bites
Stocks in News
4QFY24 Results Roundup
Sustainability Corner
IPO corner
Cover story: Party Like It’s 2024: Nifty Scales New Heights, Market Cap Hits a Whopping $5 Trillion!
Key events

📈 Weekly Market Wrap-up

This week, the Indian stock market witnessed a stellar performance with both major indices scaling new heights. The BSE SENSEX surged a whopping 1,493.36 points (2.02%) to close at a record high of 75,410.39. Similarly, the Nifty 50, representing the 50 largest companies, gained 491 points and settled at a new peak of 22,957.1, recording a weekly gain of 2.19%. This positive momentum reflects investor confidence in the Indian economy and the potential of leading corporations. In fact, this week also saw three NSE sectoral indices hit a record high – the Nifty Energy, Nifty Auto, and Nifty Metal.

FPI and DII Activity:

Foreign investors (FPIs) turned net buyer for the week ended 24th May, purchasing equity worth ₹1,165.54 crores. However, they were net sellers 3 out of four trading days in the week. On the contrary, domestic institutional investors (DIIs) continued their buying spree in the entire week, making a net total purchase of ₹6,977.71 crore of Indian equities and ₹40,797.89 crore for the month so far.

Winners

This week’s market rally favored infrastructure and heavy industries with Bharat Electronics in the lead clocking 19.7% return during the week followed by Hindustan Aeronautics (13.9%), Adani Power (11.2%) and Adani Enterprises (10.6%) logging the highest weekly gains with IRFC (9.0%) next in the list of top winners for the week.

Losers

Among the losers, Zomato was the biggest loser (-6%), followed by two pharma companies namely Torrent Pharma (-3.3%) and Sun Pharma (-2.5&). These were followed by Shree Cement (-2.5%) and InterGlobe Aviation, (- 2.6%).

Stock talk: Zee and Sony Saga

In December 2021, Zee Entertainment (ZEEL) and Sony Pictures Networks India (SPNI) announced a mega-merger aiming to create a media giant with a market share exceeding 25%. However, the dream deal fell apart in January 2024. Sony pulled out citing unmet conditions and demanded $90 million as termination fees while ZEE contested this, leading to ongoing legal battles. This leaves both companies navigating a competitive landscape without the promised operational benefits. The outcome of the legal battle could significantly impact their future stock performance.

Sector Spotlight:

This week, technology led the pack in the Indian stock market with the Nifty Media index surging 4.70%, followed by Nifty Metal at 3.88% and Nifty PSU Bank at 3.51%. The Nifty Energy index also witnessed a healthy gain of 3.31%.

It was a great week for all sectoral indices as all of them ended with gains. The ones that clocked lower gains were Nifty IT with a 1.33% gain. It was followed by the consumer durables sector Nifty Consumption (1.24%), Nifty Pharma (0.73%) and Nifty FMCG (0.70%).

Rupee Report:

The Indian rupee displayed some resilience this week, closing at 83.09 against the US dollar, a gain of 19 paise. This positive movement comes after closing at 83.28 on Wednesday. This northward move in rupee suggests improvement in investor sentiment towards the rupee.

Gold Surges:

Gold prices took a tumble this week, extending their losses for a third consecutive session. Investor concerns regarding the timing of U.S. interest rate cuts, coupled with a strengthening U.S. dollar, dampened sentiment. Spot gold fell a significant 2.1% to $2,328.61 per ounce, despite reaching a record high of $2,449.89 earlier this week. The rise in U.S. business activity, reaching a two-year peak in May, boosted the dollar and made gold, a non-interest-bearing asset, less attractive to investors. Despite the weekly decline, gold remains up 14% so far for the year.

Global Gossip:

US stocks rose on Friday, yet the week ended with mixed results. An inflation scare, fueled by robust economic data and Nvidia’s strong Q1 earnings report, kept investors on edge. For the week, the Dow dropped 2.34%, the S&P edged up 0.03% and the Nasdaq gained 1.41%

Nvidia’s Stellar Earnings: On Thursday, Nvidia’s net profit quadrupled year-over-year, propelling its shares up by 12%. The ripple effect boosted other chip stocks and fueled positive momentum on Nasdaq and other indices worldwide.

Key European markets ended the week in red with FTSE closing at 8,317.59, down 21.64pts or 1.22%, DAX ending the week flat, 0.06% down at 18693.37 and CAC at 8094.97 down 0.89%. Among the Asian markets, the Nikkei (-0.36%) and Straits Times (-.09%) ended flat, while the Shanghai Composite and Hang Seng plunged 2.07% and 4.83% respectively.

  Bottom Line

This week, the Indian stock market painted a picture of selective exuberance. The headline indices, SENSEX and Nifty, scaled new heights, fueled by optimism towards the domestic economy and strong performances from infrastructure and heavy industry players. However, the gains weren’t evenly distributed. Sectors like IT and FMCG witnessed muted growth, while healthcare even saw a slight decline. The rupee displayed some resilience, strengthening against the dollar. Meanwhile, gold prices tumbled due to shifting investor sentiment regarding U.S. interest rates and a strengthening dollar. Overall, it was a week of contrasting trends, highlighting the importance of looking beyond headline indices and understanding sector-specific movements for informed investment decisions.

🍟 Quick Bites

📊 SEBI to consider average market cap (July-Dec) for listing obligations (e.g., rumor response, meeting timelines).

💰 RBI approves ₹2.11 lakh crore dividend to government (over double last year’s amount).

📜 India’s paper imports jump 34% to 19.3 lakh tonnes in 2023-24 (according to Indian Paper Manufacturers Association).

⛽ India’s net oil & gas imports rise 7% to $12.3 billion in April 2024 (reported by Petroleum Planning & Analysis Cell).

✈️ India climbs to 39th globally in Travel & Tourism Development Index 2024 (World Economic Forum), topping South Asia. US holds the top spot.

🚌 Uber becomes the first company to receive a license for operating buses in Delhi NCR under the Delhi Premium Bus Scheme.

🪙 RBI’s gold reserves grew by 24 tonnes in 2024 YTD, compared to 16 tonnes added in all of 2023.

🏭 India’s manufacturing PMI dipped to 58.4 in May, while services PMI climbed to 61.4

4QFY24 Results Roundup

💼 Honasa Consumer (Mamaearth) emerges from the red, swinging to profitability with a ₹30.40 crore net profit in its Q4FY24. The stock hits 3-month high after return to profit.

🚗 Uno Minda celebrates a 58% surge in its Q4FY24 net profit and announces a ₹1.35 per share dividend (record date June 7th).

📉 ITC experiences a slight dip in Q4 profit for FY24 but will still offer a ₹7.50 per share dividend (record date June 4th).

🔀 KPI Green announces a 1:2 stock split for shares with a current face value of ₹10.

🏗️ Grasim Industries reports a 15.54% increase in Q4 profit for FY24and will distribute a ₹10 per share dividend. Their building materials earnings also saw a 24% year-over-year jump.

🛫 InterGlobe (IndiGo) soars with a 106% increase in Q4FY24 profit, alongside a 25% year-over-year rise in ticket sales revenue.

🏥 Max Healthcare Q4FY24net profit dips 2.81%, declares ₹311 crore profit & ₹1.5/share dividend.

🍕 Jubilant Food Q4FY24 net profit surges 630% to ₹208.20 crore, opens 356 new stores; ₹1.2/share dividend.

☀️ Sun Pharma’s Q4FY24 net profit jumps 34% to ₹2,654 crore, announces ₹5/share dividend & 10% sales rise in India (Jan-Mar).

💸 Paytm’s Q4FY24 net loss widens to ₹549.60 crore (vs ₹168.90 crore last year).

💉 Gland Pharma’s Q4FY24 net profit rockets 145% to ₹192.40 crore, announces ₹20/share dividend.

🏭 BHEL Q4FY24 net profit falls 25.60% to ₹490 crore, declares ₹0.25/share dividend.

🚢 Trident Q4FY24 net profit tumbled 54.8%, announces ₹0.36/share interim dividend (record date: May 28th).

☀️ Solar Industries net profit for Q4FY24 rises 10% to ₹243 crore, declares ₹8.5/share dividend.

🔔 BEL’s Q4FY24 net profit climbs 30% to ₹1,797 crore, announces ₹0.80/share dividend.

⛽ ONGC net profit for Q4FY24 surges 78% to ₹11,526.53 crore, declares ₹2.50/share dividend.

🛢️ Oil India announces ₹3.75/share dividend & 1:2 bonus share issue.

📈 Page Industries boasts a 38% year-over-year jump in its Q4FY24 profit and will distribute a ₹120 per share dividend (record date May 31st).

✈️ IndiGo soared this week, doubling its net profit for Q4FY24 to ₹1,894.8 crore (up 106% YoY). This surge, fueled by rising passenger traffic and capacity, lifted the aviation sector and likely contributed to the broader market rally.

Stocks in news:

💼 Indian Bank to raise ₹12,000 crore via equity & debt.

🏗️ Welspun Corporation gets ₹1,864.71 crore order for Maharashtra project.

💊 Zydus Lifesciences receives US FDA nod for asthma tablets.

🚗 JK Tyre to invest ₹1,400 crore in 2 years to meet rising tyre demand.

💼 M&M Finance gets IRDAI license to sell life, health & general insurance.

💊 Cipla gets US FDA approval for generic drug for hormonal disorders.

🛣️ PNC Infratech bags ₹4,994 crore orders from Maharashtra Road Development Corp.

📱 Vodafone Idea (Vi) to raise ₹2,075 crore through share issue to Aditya Birla Group.

🚄 RVNL gets ₹148 crore order to upgrade electric traction system in Kharagpur.

👁️ Biocon Biologics gets US FDA approval for eye treatment products.

🔌 Tata Steel inks deal with National Grid (UK) for electrical framework project by 2027.

💊 Glenmark Pharma subsidiary inks deal with BeiGene to manufacture & sell cancer drugs in India.

🏗️ Kalpataru Projects wins ₹7,550 crore contract for Saudi Aramco’s gas pipeline expansion.

🏘️ Signature Global acquires 14.65 acres of land in Gurugram for housing project.

🚗 Tata Motors subsidiaries sign deal with Bajaj Finance for supply chain financing.

✈️ L&T Tech celebrates the opening of a new aircraft simulation center for Airbus in Bengaluru.

📦 Delhivery teams up with Sugar Cosmetics to handle pan-India B2B deliveries.

🌱 Sustainability Corner

🌬️ Suzlon wins 402 MW wind energy project orders from Juniper Green Energy.

IPO corner

Listings:

Virat Kohli backed Go Digit makes a lackluster debut, listing with a modest gain of 5.15% premium at its issue price. The stock opened at ₹286 on Thursday, 23rd May on NSE, as against its issue price of ₹272.

Aadhaar Housing Finance’s IPO listing wasn’t stellar, opening at ₹315 per share on NSE, matching its issue price of ₹315

Rulka Electricals had a stellar listing on Friday 24th May, debuting at ₹525 per share, a premium of a whopping 123.40% over the issue price of ₹235. It was a SME IPO.

Currently Open:

Awfis Space Solutions IPO is open for subscription until May 27th. It received a subscription of 4.28 times on the second day of bidding, according to BSE data.

Upcoming SME IPOs this Week:

GSM Foils (May 24th – 28th)

Vilas Transcore (May 27th – 29th)

Beacon Trusteeship (May 28th – 30th)

News:

Sebi approves IPOs for travel portal ixigo’s parent firm and Bansal Wire Industries.

Sebi amends rules to simplify the IPO process for companies

. 🏨 Oyo’s parent company, Oravel Stays, reportedly cancels its IPO application.

Party Like It’s 2024: Nifty Scales New Heights, Market Cap Hits a Whopping $5 Trillion!

This week, the Indian stock market was a scene straight out of a celebratory parade. Not only did the Nifty 50 touch a brand new all-time high, but the combined market capitalization of companies listed on the BSE (Bombay Stock Exchange) crossed a historic milestone – a staggering $5 trillion! Let’s unpack this exciting news and see what it means for you as an investor.

Nifty’s Stellar Run: Buckle up, because the Nifty 50 has been on a tear! This key index, representing the 50 largest companies in India, breached the 23,000-mark on Friday for the first time ever this week. This translates to a phenomenal growth trajectory, considering it just hit 22,000 a few days ago. It’s a clear indicator of investor confidence in the Indian economy and the potential of these leading corporations.

Market Cap Mania: Now, let’s talk about the big one – the $5 trillion market cap.
This essentially means that the total value of all companies listed on the BSE has reached a record high. Imagine adding up the market value of Reliance Industries, TCS, HDFC Bank, and every other publicly traded company in India. That colossal sum now stands at a cool $5 trillion! This achievement puts India in the elite club of nations with stock markets exceeding this threshold, a testament to the country’s economic prowess.
What’s Driving the Boom? Several factors are contributing to this market surge.

Here are some key players:
• Domestic mojo: Indian investors, both retail and institutional, have been actively participating in the market, fueling domestic liquidity. This shift towards domestic dominance is a positive sign for long-term stability.
• Global tailwinds: Despite some global headwinds, India’s economic fundamentals remain strong. Relatively stable inflation and a focus on infrastructure development are attracting foreign investors as well.
• Corporate performance: Indian companies have been delivering robust financial results, boosting investor confidence in their growth prospects.
• Lower interest rates: The RBI’s accommodative monetary policy has made stocks a more attractive investment option compared to fixed-income instruments.

A Word of Caution: While the market euphoria is contagious, it’s important to maintain a balanced perspective. Stock markets are cyclical, and periods of high growth can be followed by corrections, especially with elections period going on. As an investor, you should always do your own research and invest based on your risk tolerance and long-term financial goals.

What Does This Mean for You?

This market rally signifies a period of opportunity for investors. Here are some things to keep in mind:
• Stay invested but be diversified: Don’t chase short-term trends. Build a well-diversified portfolio that aligns with your risk profile and investment goals.
• Focus on quality: Prioritize companies with strong fundamentals and a track record of consistent performance.
• Don’t panic sell: Markets fluctuate, so avoid impulsive decisions based on short-term volatility.
• Seek professional guidance: If you’re unsure about navigating the market, consider consulting a financial advisor to develop a personalized investment strategy.

The Final Takeaway: The Indian stock market is scaling new heights, and the $5 trillion market cap is a significant milestone. While it’s time to celebrate the country’s economic strength, remember to approach your investment decisions with a cautious yet optimistic outlook. Stay informed, invest wisely, and enjoy the ride!

Upcoming key financial events for the week:

Date	Event
24-May-24	– GBP Retail Sales m/m
	– USD Revised UoM Consumer Sentiment
28-May-24	– USD CB Consumer Confidence
29-May-24	– EUR German Prelim CPI m/m
30-May-24	– USD Prelim GDP q/q
	– USD Unemployment Claims
	– USD Pending Home Sales m/m
31-May-24	– USD Core PCE Price Index m/m