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 Weekly Update

The Indian stock market showcased a robust performance this week, with major indices surging significantly. The SENSEX soared by 1,822.83 points, reaching 79,032.73, marking a substantial 2.36% increase. Similarly, the NIFTY climbed 509.5 points to settle at 24,010.6, reflecting a 2.17% gain. The BANKNIFTY also experienced growth, rising by 680.8 points to 52,342.25, a 1.32% increase. While the S&P BSE Small Cap saw a modest rise of 69.60 points, closing at 52,130.41 with a 0.13% gain, the S&P BSE Mid Cap recorded a more notable increase of 400.36 points, ending at 46,158.35, up by 0.87%. This overall bullish trend underscores investor confidence and positive market sentiment.

Top Gainers:

UltraTech Cement led the charge with a remarkable 9.36% rise, closing at 11,660.75, after reaching a high of 11,779.85 and a low of 11,483.35. Grasim Industries followed closely, posting an impressive 8.18% gain to close at 2,670.75. Reliance Industries also performed strongly, increasing by 7.74% to end at 3,131.85. Dr. Reddy’s Laboratories and Info Edge (India) both saw significant upticks, closing at 6,405.75 (+6.61%) and 6,797.6 (+6.57%) respectively.

Top Losers:

IndusInd Bank saw the steepest decline, dropping 4.13% to close at 1,463.8, despite reaching a high of 1,494.4. Eicher Motors also experienced a significant drop, falling 3.85% to end at 4,670.8. Cipla’s stock decreased by 3.83%, closing at 1,482. DLF and Havells India similarly saw declines, with DLF falling 3.65% to 824.6 and Havells India dropping 3.55% to close at 1,819.6. These declines indicate a cautious market environment and potential investor concerns in these sectors.

Sector Spotlight:

The performance of sectoral indices in this week’s market session was mixed. The NIFTY ENERGY index led the gains with a substantial rise of 3.29%, closing at 41,789.2. NIFTY IT followed closely, increasing by 2.72% to 36,157.5, while NIFTY CPSE gained 1.47%, ending at 6,806.75. NIFTY PHARMA also showed positive movement, rising by 1.04% to 19,731.55, and NIFTY AUTO saw a modest increase of 0.43%, closing at 25,200.6.

On the downside, NIFTY METAL declined by 1.77% to 9,814.3, and NIFTY REALTY experienced the most significant drop, falling by 2.4% to 1,104.75. NIFTY MEDIA and NIFTY PSU BANK also faced declines, with NIFTY MEDIA decreasing by 2.32% to 1,992.35, and NIFTY PSU BANK down by 0.25% to 7,365.95.

Global Gossip:

In the latest trading session, global markets exhibited mixed performances. In the U.S., the Dow Jones slipped slightly by 0.12% to close at 39,118.86, while the S&P 500 dropped 0.41% to 5,460.48, and the Nasdaq fell by 0.71% to 17,732.60.

European markets also faced declines, with the FTSE decreasing by 0.19% to 8,164.12, and the CAC dropping 0.68% to 7,479.40. However, the DAX showed a marginal gain of 0.14%, closing at 18,235.45.

Asian markets displayed a more positive trend, with Japan’s Nikkei 225 rising by 0.61% to 39,583.08, and the Shanghai Composite gaining 0.73% to reach 2,967.40. The Hang Seng index remained relatively flat, inching up by 0.01% to 17,718.61.

Rupee Report:

The Indian rupee is expected to appreciate in the coming days, likely trading in the range of 82.50 to 83.50 against the US dollar. On Monday, the rupee closed stronger at 83.4600, compared to 83.5325 in the previous session. This strength was supported by gains in most Asian currencies and dollar sales from foreign banks. The dollar slipped from its near two-month high, down 0.2% at 105.64, which helped boost the rupee. Despite early gains from foreign bank dollar sales, bids from oil companies eroded some of the rupee’s advances. For the dollar-rupee pair, a drop below 83.40 could move it to 83.20, while a breach of 83.60 might push it towards 83.80, according to a foreign exchange trader at a large private bank.

Gold Report:

Gold prices showed a slight uptick on Thursday, with investors closely monitoring upcoming U.S. inflation data for insights into the Federal Reserve’s future interest rate decisions. Spot gold rose by 0.3% to ₹1,70,426.54 per ounce, rebounding from its recent low reached on Wednesday, June 10. Meanwhile, U.S. gold futures also saw a modest increase of 0.1%, reaching ₹1,73,339.44. The movement reflects cautious optimism among traders awaiting economic signals that could impact gold’s safe-haven appeal amid evolving monetary policy expectations.

Bottom Line:

In the current market landscape, all eyes are keenly fixed on the upcoming Budget 2024, set to play a pivotal role in guiding market movements. This forthcoming budget holds significant implications for sectors ranging from infrastructure to finance, with stakeholders eagerly awaiting policy directions that could shape economic recovery and growth prospects.

However, the exact contours of the budget remain uncertain, leaving room for speculation about the balance between reform initiatives and fostering sustainable growth. As investors and analysts await further clarity, hopes are pinned on the government striking a judicious balance that propels India towards its developmental goals.