The Indian stock market ended the first week of the financial year 2023-24 on a positive note, with gains of more than one percent. The Sensex and Nifty indices rose, aided by various factors such as FII buying, a surprise rate pause by the Reserve Bank of India, and higher GST collection and manufacturing data. The 30-pack Sensex rose 841.45 points, or 1.42 percent, to close at 59,832.97, while the broad-based Nifty gained 239.4 points, or 1.37 percent, to end at 17,599.15.
The BSE smallcap index added three percent, the midcap index one percent, and the large cap index 1.3 percent for the week. Despite concerns about growth prospects, the equity markets remained positive as inflation continued its downward trajectory both globally and domestically.
In a role reversal of sorts, domestic institutional investors (DIIs) were net sellers, while foreign institutional investors (FIIs) were net buyers for the week. FIIs bought shares worth Rs 1,604.56 crore, extending buying for the second week. DIIs, which typically cushion the market against foreign investors’ selling, booked profits and sold shares worth Rs 2,272.53 crore.
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said that the Indian equity markets would remain focused on macro trends going forward. The markets will be influenced by global news flows and the steps taken by different governments to tackle their economies.
On the sectoral front, the BSE realty index added over four percent, capital goods three percent, and the telecom index was up 2.6 percent. The BSE smallcap index gained nearly three percent, with stocks such as Nandan Denim, Black Rose Industries, Dhani Services, Rama Phosphates, Atul Auto, Ruby Mills, Andhra Petro, 3i Infotech, TARC, Fermenta Biotech, TTK Healthcare, Brightcom Group, and Gulshan Polyols adding between 25 and 53 percent.
However, there were some losers, such as KPIT Technologies, Orient Electric, MPS, Global Health, Kriti Industries (India), Capri Global Capital, Ahluwalia Contracts India, MAS Financial Services, and Route Mobile. These stocks experienced declines during the week.
Overall, the stock market had a positive week, but it remains to be seen how it will perform in the coming weeks. The markets will continue to monitor various factors, including global news flows and government policies, to determine the direction of the economy.
