Weekly market update, June 07, 2024

Indian equity indices recorded the biggest weekly gain of 2024 after a volatile week. The indices began the week hitting all-time highs and rose 3.25 per cent on optimism of a memorable win for the ongoing government. The surprise poll outcome, with the ruling BJP failing to get an absolute majority on its own, saw markets crash around seven per cent on the counting day of June 4. However, bulls were back with a bang as soon as clarity emerged regarding PM-elect Modi and his allies coming to power again, forming a coalition government. The recovery rally on Wednesday and Thursday came as domestic buying overpowered foreign sales leading to benchmark indices closing the week near all-time highs. The Nifty 50 added 3.4 per cent, while the Sensex rose 3.7 per cent this week. The broader indices also saw significant interest, each gaining around three per cent. All major sectors participated in the rally, with IT, FMCG, and Auto leading the way.

Analysts believe that volatility is likely to decrease now that major events are behind us, with the focus shifting to domestic macroeconomic data and the Union Budget. Moving to the second week of June, investors will keenly eye the ongoing Lok Sabha election developments, the upcoming US Fed interest rate decision, domestic and global macroeconomic indicators, foreign fund inflow, crude oil prices, and global cues.

Please click here to read the detailed report: https://youtu.be/HQhKZ0npCvI