IGI Logo

Below the coming week's market report from Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.

Nifty hits a record high on the back of a strong November, being the best month of 2023.  Global and domestic Investors' participation, exit polls and Q2FY24 GDP data have helped the market reach to record highs. Benchmark indices for the fifth consecutive week. This week all sectoral indices ended with gains.

In November, the IPO market stole the spotlight with 10 mainboard IPOs listed in India, of which 8 were listed with premiums. This year was a record year for the IPO market, the highest in 10 decades with optimistic market conditions and helped companies raise capital. Going forward, investors may show high interest in the IPO space considering the success of Tata Technologies and IREDA.

FPI in Nov turns net buyer with purchases of over $620mn after selling more than $5bn in two months, amid easing global bond yields and softening US dollar index. Apart from equities, FPIs invested in the debt market also in Nov, hitting a 2-yr high due to attractive yields on debt. Indian debt yield is comparatively more attractive than other emerging markets. Although FIIs are selling in the Indian markets due to high global bond yield and surge in dollar index DIIs supported the market by buying offsetting selling from foreign investors.

India’s S&P global manufacturing PMI in Nov climbed to 56 amid reduced price pressure and rising demand. India’s Q2FY24 GDP grew 7.6%, being the fastest-growing major economy. It is expected that the momentum will continue and lead to a rise in estimates for FY24 & CY23. Eight core industries increased by 12.1% in oct mainly due to the cement and electricity sectors. Gold prices touched 6 month high due to a weaker US dollar and a pause in the hike in interest rates by Fed reserve.

The market will react to the domestic and global macroeconomic data, global bond yield, crude oil inventories, movement of the dollar index, FII and DII investment activities. Upcoming events for the next week will impact the market such as S&P services PMI for major economies like India, the USA and the UK, US ISM Non-manufacturing Prices, US trade balance, Initial jobless claims, employment rate, Nonfarm payrolls, India’s Interest rate decision and forex reserve should be watched.

The NSE Nifty 50 index was up 2.39% to close the week at 20267.90 and the S&P BSE Sensex was up 2.29% and settled the week at 67481.19. India's Nifty 50 hit a fresh record high on Friday, Nifty gained 130 points to create a fresh all-time high at 20291.55; as faster-than-expected economic growth in the September quarter added to optimism over the global interest rate outlook.

As long as the index holds 20,000 (psychological mark-19,800 low of the week), marching towards 20,500 looks likely in the coming days despite intermittent consolidation. With the hurdles placed at 20350-20400, where 20000 will act as an immediate support.

The Bank Nifty continued its higher highs and higher lows formation for five days in a row. The index rebounded after a day of small profit-taking and climbed 332 points to 44,814 on Friday with above-average volumes, forming a bullish candlestick pattern with a minor upper shadow on the daily scale. On the downside, a substantial support level rests at 44,300, where the immediate hurdle on the upside is positioned at 45,000.

Above views are of the author and not of the website kindly read disclaimer