In the week ended on Friday, 31 May 2024, the S&P BSE Sensex lost 1,449.08 points or 1.92% to settle at 73,961.31. The Nifty 50 index shed 426.40 points or 1.86% to settle at 22,530.70. The BSE Mid-Cap index declined 1.53% to close at 42,852.69. The BSE Small-Cap index fell 1.53% to end at 47,263.66.

Weekly Index Movement:

Domestic equity benchmarks surged to new highs on Monday, mirroring global optimism, but a late-day sell-off erased all gains. The barometer index, the S&P BSE Sensex declined 19.89 points or 0.03% to 75,390.50. The Nifty 50 index lost 24.65 points or 0.11% to 22,932.45.

Domestic equity indices dipped slightly for a third day straight on Tuesday, ending a choppy session with limited losses. The S&P BSE Sensex was down 220.05 points or 0.29% to 75,170.45. The Nifty 50 index lost 44.30 points or 0.19% to 22,888.15.

Indian equity indices ended with major losses on Wednesday, declining for the fourth day in a row. the barometer index, the S&P BSE Sensex, was down 667.55 points or 0.89% to 74,502.90. The Nifty 50 index lost 183.45 points or 0.80% to 22,704.70.

key equity indices ended with significant losses on Thursday, sliding for the fifth day in a row. the barometer index, the S&P BSE Sensex, was down 617.30 points or 0.83% to 73,885.60. The Nifty 50 index lost 216.05 points or 0.95% to 22,488.65.

The domestic equity benchmarks ended with minor gains on Friday. The barometer index, the S&P BSE Sensex, was up 75.71 points or 0.10% to 73,961.31. The Nifty 50 index rose 42.05 points or 0.19% to 22,530.70.

Economy:

India’s forex reserves jumped $4.549 billion to a new all-time high of $648.7 billion for the week ended May 17, the Reserve Bank said on Friday.

Gold reserves increased $1.244 billion to $57.195 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up $113 million to $18.168 billion, the apex bank said.

India’s reserve position with the IMF was down $168 million to $4.327 billion in the reporting week, the apex bank data showed.

Rating firm S&P Global Ratings on Wednesday revised outlook for the Indian economy to 'positive' from 'stable' and has affirmed the overall rating at 'BBB-' citing robust growth and improved quality of government expenditure.

'BBB-' is the lowest investment grade rating offered. The last time the agency upgraded the rating outlook was in 2010 when it shifted from negative to stable.

S&P stated, "India's robust economy growth positive impacts credit metrics. India's fiscal deficit elevated, but consolidation efforts are on. We expect India's fundamentals to aid growth momentum in 2-3 years."

Nifty stocks in Spotlight:

Adani Enterprises increased 0.95%. The company said that its board has approved a proposal to raise funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 16,600 crore by way of qualified institutional placement.

Tata Steel fell 4.18% after the company’s consolidated net profit declined 64.59% to Rs 554.56 crore from Rs 1,566.24 crore posted in Q4 FY23. Revenue from operations fell 6.79% YoY to Rs 58,687.31 crore in Q4 FY24.

NTPC declined 4%. The state-run power major’s consolidated net profit jumped 33.22% to Rs 6,490.05 crore on 7.61% rise in revenue from operations to Rs 47,622.06 crore in Q4 FY24 over Q4 FY23.

Divis Laboratories dropped 4.42%. The pharma major's consolidated net profit jumped 67.6% to Rs 538 crore on 18.04% rise in revenue from operations to Rs 2,303 crore in Q4 FY24 over Q4 FY23.

Apollo Hospitals Enterprise fell 1.42%. On consolidated basis, the company’s net profit surged 75.64% to Rs 253.8 crore as compared to Rs 144.5 crore reported in Q4 FY23 Revenue from operations jumped 14.92% year on year to Rs 4,943.9 crore in the quarter ended 31 March 2024.

Global Markets:

University of Michigan data showed that consumers expect prices to climb at a 3.3% annual rate over the next year, down from the 3.5% expected earlier in the month. This suggests that inflation pressures may be easing, which could lead the Federal Reserve to cut interest rates later this year.

In China, the manufacturing activity unexpectedly fell in May. This weak economic data fueled calls for additional government stimulus to counteract the ongoing property crisis, which is still impacting businesses, consumers, and investor confidence.