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Following a week of impressive gains, the first quarter of financial year 2024–25 has concluded on a positive note, with overall growth fuelled by the automobiles and the banking, financial services and insurance sectors. Additional contributions came from healthcare, real estate, and capital goods, while metals also reported a robust 18% year-on-year earnings growth.
Looking ahead, analysts predict that the Nifty may test levels of 24,700 and 24,850 in the upcoming sessions, which could pose immediate hurdles. Rajesh Bhosale, equity technical analyst at Angel One, said that if global markets remain supportive, the Nifty could even retest the 25,000 level and beyond.
The recent quarterly earnings have presented a mixed picture, with some companies surpassing expectations while others have shown more subdued growth. The Nifty 50 earnings grew 4% year-on-year, with Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd., projecting a steady earnings growth of approximately 15% over the next two years.
The primary market will see subdued action this week with two mainboard initial public offerings, two SME initial public offerings and five listings.
Globally, all eyes next week will be on US Federal Reserve Chair Jerome Powell's speech at the Kansas City Fed’s Jackson Hole Economic Policy Symposium next Friday. On the other hand in Asia- Japan will be in focus, as the country is all set to release Its CPI data on Friday.
Markets Last Week
Benchmark equity indices ended with weekly gains after two consecutive weeks of losses. Both the Nifty and Sensex recorded their highest closing since Aug. 2 on Friday as shares of financials and technology companies led the gains.
This week, the Nifty added 0.71% and the Sensex rose 0.92%. Nifty IT gained the most by nearly 5% during the week and Nifty PSU Bank closed the week 2.15% lower.
Only three out of the Nifty 50 stocks ended with losses and 47 ended higher. Both the Nifty and Sensex closed at their highest levels since Aug. 2.
On BSE, all 20 sectors ended higher on Friday, with the BSE IT index logging the most gain to become the best performing sector. Shares of HDFC Bank Ltd., ICICI Bank Ltd., Tata Consultancy Services Ltd., Infosys Ltd., and Reliance Industries Ltd. contributed the most to the gains in the Nifty during the last leg of trade on Friday.
"As long as the index remains above 24,350, the bullish momentum is expected to continue. On the upside, gap resistance is placed near 24,690 and 24,960 levels," Hrishikesh Yedve, assistant vice-president, technical and derivatives research, at Asit C Mehta Investment Intermediates Ltd, said.
Domestic Cues
The earnings season for the first quarter of fiscal 2024–25 concluded with the Nifty 50 Index reporting a 5.2% year-on-year increase in net profit. Meanwhile, India's CPI inflation in July 2024 fell to 3.5%, down from 5.1% in June 2024, marking a significant decrease in consumer price pressures.
Global Cues
Globally, all eyes next week will be on Federal Reserve Chair Jerome Powell's speech at the Kansas City Fed’s Jackson Hole Economic Policy Symposium next Friday. On the other hand in Asia, Japan will be in focus as the country is all set to release Its CPI data on Friday.
The rate decisions in Asian Countries like Thailand, Indonesia and South Korea will also be in focus in the week ahead. In China commercial lenders will set their loan prime rates on Tuesday.
Primary Market Action
The primary market will see subdued action this week with two mainboard initial public offerings, two SME initial public offerings and five listings.
The upcoming IPOs in India this week and coming weeks are Brace Port Logistics Ltd., Orient Technologies Ltd., Forcas Studio Ltd., Interarch Building Products Ltd.
The upcoming mainboard IPOs this week are Orient Technologies Ltd., Interarch Building Products Ltd. While, the SME IPOs this week are Brace Port Logistics Ltd., Forcas Studio Ltd.
The current active IPOs are Broach Lifecare Hospital Ltd., Solve Plastic Products Ltd.
Corporate Actions Ahead
Man Infraconstruction Ltd., Reliance Industries Ltd., AIA Engineering Ltd., Balkrishna Industries Ltd., IRB Infrastructure Developers Ltd., the Phoenix Mills Ltd., Hindustan Aeronautics Ltd., KPI Green Energy Ltd., Pfizer Ltd., Aster DM Healthcare Ltd., Jindal Steel & Power Ltd., ABB India Ltd., and Gandhar Oil Refinery (India) Ltd., will have record dates for their dividends in the coming week.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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