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he Nifty-50 Index and Sensex gained around 1.5% each over the past week, while the mid-cap index gained 3.8% and small-cap index gained +4.2% outperforming their large-cap peers significantly. Geopolitical de-escalation supported the market mood even as global equities were tepid post-elevated inflation. The focus also shifted toward the ongoing 4QFY24 earnings season, where results have been mixed so far.

All sectoral indices gained on a week-on-week basis. Capital Goods, Consumer Durable, Oil and Gas, Realty, Power, Metals, Auto, FMCG and Bank nifty gained the most, gaining between 1.5% to 4%,. Within the Nifty Index, Axis Bank (+10.4%), Divis Lab (+8.6%) and Tech Mahindra (+7.9%) gained the most, while Kotak Mahindra Bank (-9.2%), Bajaj Finance (-5.7%) and Tata Consumer (-3.1%) lost the most. Meanwhile, FPIs were net sellers and DIIs were net buyers in the same period. Going forward, D-street will focus on the macro trends, inflation and global situation including geo-political concerns.

In Global news, in US, US GDP increased at a 1.6% (vs. expectation of 2.4%) annualized pace in Q1CY24, when adjusted for seasonality and inflation. While, the personal consumption expenditures price index, a key inflation variable for the Federal Reserve, rose at a 3.4% annualized pace for the quarter, its biggest gain in a year. In Eurozone, the economy is gaining momentum. In April, the Purchasing Managers’ Index rose unexpectedly sharply to 51.4 points, its highest level for eleven months, pointing to growing economic output. In Asia, the stronger-than-expected 5.3% growth in China's economy for Q1CY24 comes as a positive surprise for analysts and policymakers. This growth figure surpasses the 4.6% expansion that was anticipated and indicates resilience in the face of challenges such as the ongoing property crisis.

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