Investors will eye several stock market triggers in the first week of the March including domestic and global macroeconomic data, political developments ahead of General Elections 2024, crude oil prices, foreign capital inflow, along with global cues.
The Indian equity indices witnessed a volatile week, ultimately extending their winning streak for a third consecutive week to achieve a new all-time high. The Nifty and Bank Nifty indices rose by nearly 0.75 per cent and 11.5 per cent respectively, closing the week at 22,419.55 and 48,636.45. The market capitalisation of BSE-listed companies reached its all-time peak of ₹394.06 lakh crore.
Initially, the Nifty prices dropped to as low as 21,860.65, the lowest level since February 15. However, bargain hunting emerged from these lower levels, driven by several positive fundamental factors. These include India’s gross domestic product (GDP) growth for the third quarter of the fiscal year 2023-24, which exceeded expectations at 8.4 per cent compared to the estimated 6.7 per cent.
On the sectoral front, all sectoral indices ended higher except Media, Pharma and IT. Additionally, the backdrop of an improving global market and a respite in the US personal consumption expenditures (PCE) inflation reading provided further support to the market.
Nifty 50 and Sensex ended higher in a special session conducted on March 2, for stock exchanges to test a failsafe system for equity trading. The 30-share BSE Sensex climbed 60.80 points or 0.08 per cent to reach its all-time closing high of 73,806.15. During the trade, the BSE benchmark reached its record peak of 73,994.70, up 249.35 points or 0.33 per cent.
The Nifty 50 went up by 39.65 points or 0.18 per cent to settle at a new closing high of 22,378.40. During the day, it hit the lifetime peak of 22,419.55, up 80.8 points or 0.36 per cent. The blue-chips indexes logged new record highs on the back of gains in metal stocks, extending their previous day’s sharp rally amid GDP data and foreign fund inflows.
Market analysts noted that banking stocks reversed initial weakness to perform well on the back of an improved economic outlook, while weakness persisted in the IT and pharma sectors, which are more closely tied to the global economy.
“At the onset of a week laden with economic data releases, investor sentiment appeared cautious. However, indices surged in the final session, propelled by stellar GDP figures and a healthy performance in the manufacturing sector as output and new order picks up,” said Vinod Nair, Head of Research, Geojit Financial Services.
‘’While robust economic data boosted confidence in the economy, concerns lingered regarding the RBI’s policy decisions amidst high liquidity and inflation worries. Corrections in mid- and small caps are underway and expected to continue, with regulators urging disclosure of associated risks to AMCs,” added Nair.
Going forward, a busy week awaits the primary market as several new initial public offerings (IPO) and listings are slated across the mainboard and small-and-medium enterprises (SME) segments. The upcoming week will be crucial from the domestic and technical point of view as investors will closely eye the stock action along with domestic and global cues.
Overall, analysts say that the sentiment remains positive, however, volatility cannot be ruled out due to ongoing concerns like delay in…
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