The second week of April 2024 brings in a host of corporate and macroeconomic data releases that will impact the stock market. Despite a volatile start, Indian stock markets managed to end the first week of the new financial year on a positive note, with Nifty 50 and Sensex extending their winning streak. Nifty 50 reached an all-time high of 22,619 while Sensex touched a record high of 74,501.73. Key sectors like metal, realty, and banking saw gains, with midcap and smallcap indices also performing well.
The Monetary Policy Committee of the Reserve Bank of India opted to keep interest rates unchanged at 6.5%, which was in line with market expectations. The financial services sector saw a significant increase, led by private lender HDFC Bank. The broader indices outperformed, with midcap index hitting a record high and smallcap index gaining over seven percent.
Analysts expect Nifty 50 to be in a consolidation phase around 22,500, with a prevailing bullish bias. The upcoming week will see the release of Q4 results for various companies, starting with Tata Consultancy Services. Investors will be closely watching macroeconomic data, including the CPI-based inflation rate and industrial production data.
Several IPOs are set to open for subscription, including DCG Cables & Wires, Teerth Gopicon, and Greenhitech Ventures. Foreign portfolio investors have been subdued so far in FY25, with FPIs selling equities while maintaining some inflow in debt investments. Global cues, such as US bond yields, commodity prices, and geopolitical situations, will also impact market sentiment in the coming week. Analysts advise a ‘buy on dips’ approach and recommend focusing on stock selection amidst the market volatility.
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