In the week ended on Friday, 21 June 2024, the S&P BSE Sensex rose 217.13 points or 0.28% to settle at 77,209.90. The Nifty 50 index added 35.5 points or 0.15% to settle at 23,501.10. The BSE Mid-Cap index declined 0.20% to close at 45,967.07. The BSE Small-Cap index gained 1.44% to end at 51,936.53.

Weekly Index Movement:

The stock exchanges remained closed on Monday, 17 June 2024, on account of Bakri-Id.

Domestic stocks extended their gains for a fourth straight session. The barometer index, the S&P BSE Sensex was up 308.37 points or 0.40% to 77,301.14. The Nifty 50 added 92.30 points or 0.39% to 23,557.90.

The key equity barometers took a breather today after a four-day record breaking streak. The barometer index, the S&P BSE Sensex was up 36.45 points or 0.05% to 77,337.59. The Nifty 50 index lost 41.90 points or 0.18% to 23,516.

The headline indices clawed their way back on Thursday, ending slightly higher after a volatile session. The barometer index, the S&P BSE Sensex was up 141.34 points or 0.18% to 77,478.93. The Nifty 50 index rose 51 points or 0.22% to 23,567.

The key equity indices ended with modest losses on Friday. The barometer index, the S&P BSE Sensex was down 269.03 points or 0.35% to 77,209.90. The Nifty 50 index declined 65.90 points or 0.28% to 23,501.10.

Economy:

Fitch Ratings upgraded India's GDP growth forecast for the current fiscal year to 7.2%, citing a rebound in consumer spending and rising investments. Fitch Ratings quarterly Global Economic Outlook report also depicted raised the world growth forecast for 2024 to 2.6% from 2.4%. The report highlights positive signs from Europe's improving recovery prospects, China's reviving export sector, and stronger domestic demand in emerging markets (excluding China).

Meanwhile, the headline HSBC Flash India Composite Output Index– a seasonally adjusted index that measures the month on-month change in the combined output of India's manufacturing and service sectors – increased from 60.5 in May to 60.9 in June, highlighting a quicker rate of expansion that was substantial by historical standards and broadly aligned with the average over the past 12 months. As has been the case since February, growth was stronger at goods producers than at service providers

India's direct tax collection has grown significantly in the current financial year compared to the same period last year. Gross collections (before refunds) are up 22.19%, reaching over Rs 5.15 lakh crore by mid-June, while net collections (after refunds) have grown by around 21% to over Rs 4.62 lakh crore. This growth is partly due to a 27.34% increase in advance tax collection. The government has also issued more refunds this year, with Rs 53,322 crore paid out by mid-June, a 33.7% increase.

Separately, the government announced an increase in Minimum Support Prices (MSP) for all 14 kharif crops for the 2024-25 season (July-June). This hike is expected to put an additional Rs 35,000 crore in the hands of farmers, bringing the total MSP payout to around Rs 2 lakh crore.

Meanwhile, the Reserve Bank of India (RBI) projects continued economic momentum in the April-June quarter, driven by rising private consumption and strengthening manufacturing and services sectors.

Further, India’s forex reserves rose 4.307 billion US Dollars to hit a new all-time high of 655.817 billion Dollars for the week ended June 7. The reserves had jumped 4.837 billion dollars to 651.51 billion dollars in the previous week. For the latest week, foreign currency assets, a major component of the reserves, increased by 3.773 billion dollars to 576.337 billion dollars.

Stocks in Spotlight:

Wipro gained 2.77%. The IT major announced an extension of its partnership with US clothing brand Hanesbrands and a new collaboration with financial services company GBST.

Tata Motors slipped 3.26%. The auto major announced that it will increase the price of its commercial vehicles (CVs) up to 2% effective from 1 July 2024. Meanwhile, JLR and Chery Automobile Company, partners in the Chery Jaguar Land Rover (CJLR) joint venture, have signed a letter of intent to focus on electric vehicles (EVs) for the Chinese market.

Sun Pharmaceutical Industries declined 3.38%. The company said that it has entered into a non-exclusive patent licensing agreement with Takeda Pharmaceutical Company (Takeda) to commercialise Vonoprazan tablets in India under the brand name "Voltapraz”.

Oil and Natural Gas Corporation (ONGC) fell 2.02%. The company announced that its board approved the appointment of Devendra Kumar as the chief financial officer (CFO) with immediate effect from 20 June 2024.

Nestle India shed 1.86%. The compnay said that its board will meet on July 8 to declare an interim dividend for FY 2024-2025. The record date for the same is fixed as July 16.

Vedanta jumped 5.11%. The mining company’s board has considered and approved fund raising of Rs 1,000 crore by issuing non-convertible debentures (NCDs) on private placement basis.

Global Markets:

The Bank of England (BoE) decided to hold interest rates at a 16-year high of 5.25% despite some members advocating for a cut. This decision comes ahead of the July 4th election.

Meanwhile, the Swiss National Bank (SNB) cut its key interest rate by 25 basis points to 1.25% on Thursday, June 20th, 2024. This marks the central bank's second interest rate reduction this year. Inflation in Switzerland expected to hold steady around 1.4% for 2024.

The Reserve Bank of Australia (RBA) held its benchmark interest rate at 4.35% for its fifth straight meeting. Further, the RBA also noted that the economic outlook remained “uncertain,” with recent data signaling that achieving the inflation target was unlikely to be smooth.

China, as expected, kept benchmark lending rates steady despite a sluggish economy.

In Japan, core inflation, which excludes volatile fresh food prices, rose for the first time in three months in May. The increase was driven by higher prices for nonperishable goods and came in at 2.5% year-over-year, exceeding the central bank's 2% target.

U.S. retail sales data released Tuesday showed minimal growth in May, with prior month figures revised downward. This suggests sluggish economic activity in Q2, prompting investors to anticipate a Fed rate cut in September. CME FedWatch data indicates a 67% chance of easing, up from 61% the day before.