Weekly market update, May 24, 2024

Indian equity indices ended the week with strong gains despite mixed cues from global markets. Nifty 50 and Sensex reclaimed their record highs and gained around two per cent this week logging their best week in three months. The key benchmark indices witnessed a one-way increase as sentiments were lifted after the RBI approved a massive, all-time high surplus transfer of around Rs. 2.11 lakh crore for FY24, boosting government revenues and supporting the fiscal deficit target. It is anticipated that the surplus transfer will enable the government to increase capital expenditures or reduce borrowing in FY25. Waning election-related anxiety along with the anticipation of political stability after the Lok Sabha elections further extended the gains. The broader indices showed mixed performance, with midcaps gaining about one per cent while smallcaps ended flat. On sectoral front, Most of the sectoral indices ended the week with gains except BSE Healthcare.

In the last week of May, Analysts expect that  investors will keenly eye the final batch of the January-March quarter results for fiscal 2023-24 (Q4FY24), election voter turnout, domestic and global macroeconomic data, foreign fund inflow, crude oil prices, and global cues for direction in the domestic equity market.

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