Stock Market Recap Report-January 2024

Monthly Market Snapshot: January 2024

January 2024 presented a contrasting picture compared to December's record-breaking highs. The month started with some optimism, carrying over positive global cues. However, volatility dominated the scene, leading to a rather mixed performance for the Nifty 50.

Key Market Movements:

• January began on a positive note, riding the momentum from December's highs. Banking and IT stocks led the gains.
• Later, the market witnessed a sharp correction around the 23rd, primarily driven by selling pressure in heavyweight stocks like HDFC Bank and Zee Entertainment.
• The last few days saw a cautious recovery, with the Nifty 50 inching closer to its January high.

Overall, January was marked by considerable volatility, witnessing significant fluctuations before closing nearly at the same level where the Nifty 50 started the year.

Here is the summary of the performance of Investmint models for January 2024:

Leaders and Laggards

• The ‘Alpha Ally' and ‘BTST' models were the best performers, yielding +14.07% and +12.44%, respectively.
• On the other hand, 'High Five' and ‘Nifty Rider' were among the underperformers, with -6.69% and -2.08% returns, respectively, in the same period.

Here are the key highlights of the Interim Budget for 2024

Fiscal Consolidation:

• No major changes in tax rates for direct and indirect taxes.
• Government borrowing was reduced compared to 2023-24.
• Aim to reduce fiscal deficit to 4.5% in 2025-26.

Capital Expenditure:

• Increased focus on infrastructure spending with ₹11.11 lakh crore allocated for capital expenditure.
• UDAN scheme gets ₹502 crore to revive airports and start new air routes.
• ₹1000 crore was sanctioned for reviving additional airports, helicopters, and water aerodromes.

Social Welfare:

• ₹30 million affordable houses to be built in rural areas with government subsidy.
• Maternal and child health care schemes combined into one comprehensive program.
• The Ayushman Bharat scheme expanded to include ASHA and Anganwadi workers.

Other Key Points:

• No change in tax slabs for individuals.
• ₹1 crore households to get up to 300 units of free electricity through a rooftop solarization scheme.
• Focus on encouraging "Nano DAP" fertilizer for various crops.
• Policies to support dairy farmers and eliminate Foot and Mouth Disease.

As we conclude the monthly report, we are adopting a cautious approach, anticipating weakness in the Nifty 50 for the upcoming week. The confirmation of this expectation would occur with a breach of the 21800 support level.

Disclaimer: The opinions expressed in this blog are personal views and should not be considered financial advice. Please do your own research and consult with a professional before you make any investment decisions.