Weekly market update, Jan 20, 2024

The Indian benchmark indices declined after witnessing a rise in the previous week as S&P BSE Sensex and Nifty 50 fell 1.58% and 1.47% respectively. However, the mid-cap and small-cap segments witnessed a gains; The BSE Midcap and BSE Smallcap rose 1.33% and 0.27%, respectively. Domestic equity markets started the week with healthy gains and reached a fresh high as sentiments underpinned by the better-than-expected quarterly earning updates from some of the index heavy-weights along with hope for early rate cut by the U.S. Fed and the European Central Bank. However, the trend reversed as sentiments were dampened after European Central Bank policymaker expressed concerns on interest rate cuts due to high inflation.

On the BSE sectoral front, S&P BSE Oil & Gas rose 4.33% due to surge in state-run oil companies which was fueled by capital spending of Rs. 89,000 crore that represented 84% of capex target of FY24, in the first nine months of the current fiscal year to improve new production and distribution facilities. S&P BSE Bankex fell 2.91% as outlook soured for banking sector following the Q3FY24 result of the country’s biggest private sector lender.

Meanwhile, trading across equities, debt, and money markets will remain shut on Monday due to a public holiday in Maharashtra. The Maharashtra government has declared a public holiday on January 22 to mark the celebration of Ram temple Pran Pratishtha in Ayodhya. The Indian stock markets had a full trading session on Saturday, January 20.

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