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Below the Quote on Coming week`s market report from Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.

Benchmark indices snapped two weeks losing streak by ending the Budget week higher with IT companies and Reliance gaining the most. Market sentiments were boosted after Govt sticking to fiscal glide path. On a sectoral basis, PSU banks gained the most while FMCG and Media fell the most.

Finance Minister Nirmala Sitharaman presented the Interim Budget announcing a sharp cut in the Fiscal deficit to 5.1% for FY25 and 5.8% from 5.9% for FY24. The govt also decided to keep capex growth steady and grow capex by 11.1% to Rs 11.11trillion for FY25. The budget made no change in direct, or indirect taxation. The major focus of the budget was on capex and consolidation theme. The major sectors which will benefit from the budget in the long term are infra, aviation, railways, metros, power, capital goods, agriculture, housing and technology to stay supported by government spends. Govt is also promoting tourism by providing long-term interest-free loans to promote iconic tourist centres.

This budget doubles down on its green growth efforts with initiatives aimed at improving the ecosystem for electric vehicles and biomanufacturing. Notably, the push for rooftop solarization will indirectly boost the income as it is estimated to save households Rs 15000-18,000 annually on electricity bills.

On the domestic front, India can become 3rd largest economy in the world with 5 trillion GDP from current 3.7 trillion in next 3 years and aspire to become 7 trillion economy by 2030.

The market focus will be on the ongoing Q3FY24 earnings season which is contributing to the movement in stock price, with many companies announcing their results in the coming days such as Ashok Leyland, Bharti Airtel, Sun Pharma, Britannia, Birla Corp, CAMS, Godrej Properties, Lemon Tree, Apollo Tyres, Nestle, Grasim, LIC, Godrej, IRFC and many more.  
 
Earnings growth and demand is sustained this quarter, with optimism continued for Indian corporates business performance. IT sector companies reported mediocre performance while banks reported better performance than expected. Real estate sector continues to boom while consumer sector struggled for growth for another quarter due to weak rural demand.

The market will react to the major domestic and global economic data, crude oil inventories, FII/DII investment patterns, movement of the rupee against the dollar, ongoing earnings season, and upcoming elections. Economic numbers will impact the market such as S&P Global Services PMI of countries like India, the UK, US, crude oil inventories, US trade balance, Initial jobless claims, 10-year Note Auction, China’s Inflation numbers and India’s Interest rate decision and forex reserve numbers are some of the events which should be kept in focus.


Indian indices, BSE Sensex and Nifty traded in the green in the first half & made a fresh all-time high at 22126.80 on Friday before settling the week at 21853.80, while, Sensex ended the week at 72085.63. Boosted by the rise in the global market and gains in index heavyweight RIL.
 
In Nifty, For the week, the index gained 2.35 percent and formed a long bullish candlestick pattern with an upper shadow that formed a Double Top formation, which is a bearish reversal pattern. Conversely, a break below the support level at 21,500 may indicate a bearish momentum
 
Shifting focus to Bank Nifty, the index faced selling pressure from the higher levels near 46800. For the upside 46800 and 47200 can now act as immediate resistance, While, 45500-45200 will act as immediate support.

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