Weekly Wrap-Up: November Week 5, 2023

Weekly Market Snapshot

The week showcased a bullish trend driven by strong economic indicators, upgraded forecasts, and positive global cues. Robust GDP growth and consistent sectoral performance propelled the market to new highs. Analysts remain optimistic, with eyes on global cues and fiscal developments for the upcoming weeks.

Key Market Movements‌‌

• December began with Nifty50 hitting an all-time high on Dec 1, with Nifty50 rising by 2.39% and Nifty500 rising by 2.67%.
• GDP Growth: India's GDP grew at an impressive 7.6% for July-September, surpassing estimates and reflecting strong economic resilience.
• Core Sectors: Eight core sectors posted a growth of 12.1% in October, contributing to positive market sentiment.
• Reduced geopolitical tensions and global optimism influenced markets, with declining US bond yields and a weaker dollar.
• Multiple brokerages upgrading India further bolstered market sentiment.
• FIIs remained buyers, adding around Rs 10,000 crore worth of shares for the fourth straight session.
• Consistent tax collection growth aided in managing the fiscal deficit at 45% of the FY24 budget estimate

Sectoral Movements And Stock Specifics‌‌‌‌

• Midcap index gained more than 3%, and Nifty Bank rose over 2% during the week.
• All sectoral indices recorded gains, with the PSU index leading.
• 48 of 50 Nifty stocks saw gains, with Axis, Britannia, BPCL as top gainers.
• Top midcap gainers included PFC, India Cements, Dixon, and BHEL.

Leaders And Laggards

• 'BTST' and 'High Five' were two of the best-performing models, with 4.17% and 3.72%, respectively.
• 'Back Up' and 'Quick Short' were two of the underperformers, with 0.00% and -2.53% returns respectively in the same period.

• Coming to stocks, GICRE, or General Insurance Corporation of India, provided a monthly return of 34.19% as part of 'Alpha Ally' model, followed by MANINFRA, or Man Infraconstruction Ltd, which returned 33.07% as part of 'Sector Superstars' model.

• On the contrary, INDIANB, or Indian Bank, was the underperformer with negative 7.14% returns as part of the 'Alpha Ally', followed by ACE, or Action Construction Equipment Ltd with negative 2.90% returns as part of the 'Sector Superstars' model.

Expert Insights And Market Outlook‌‌

• Swapnil Shah, Director - Research, StoxBox: Exit polls favoring BJP triggered positive market reactions. Further gains anticipated if final election results align. BJP's pro-reform image and economic resilience in challenging times boost investor confidence. A strong BJP win in key states could signal robust growth potential for India in the lead-up to the 2024 general elections.
  
• Prashanth Tapse, Senior VP (Research), Mehta Equities: Frenzied buying, driven by renewed FII optimism and positive European cues, propels Nifty to record highs. India shines amid global uncertainty, supported by robust GDP and manufacturing data. Short-term technical outlook favors bulls, with strong support and resistance levels.
  
• Ajit Mishra, SVP - Technical Research, Religare Broking: Nifty makes a new record high, settling at 20,267.90. Rotational buying across key sectors contributes to the positive trend. Upbeat global cues, especially from the US markets, add to market positivity. "Buy on dips" approach recommended with a focus on stock selection.
  
• Vinod Nair, Head of Research at Geojit Financial Services: Better-than-estimated India GDP numbers elevate FY24 growth outlook, supporting market momentum. Government capex and manufacturing activity drive outperformance in capital goods and infra stocks.

Reads On The Internet

• GDP Grew By 7.6% In Q2 Compared To 7.8% In Q1
  India's economy grew 7.6 per cent in the September quarter of this fiscal and remained the fastest-growing large economy, mainly due to better performance by manufacturing, mining and services sectors
  
• Indian Equity Market Enters Coveted USD 4 Trillion Club For 1st Time Ever
  Thanks to the optimism in equities, the market capitalisation of BSE-listed companies reached ₹ 3,33,26,881.49 crore in morning trade, translating into USD 4 trillion at the exchange rate of 83.31.
  
• Unsecured personal loans jumped 4-fold to Rs 13.3 lakh cr from FY17 to FY23: Report
  Overall, the number of personal loans has almost tripled during this period to Rs 51.7 lakh crore, an analysis by Care Ratings revealed.
  
• Crypto road map ready, G20 backs finance track agenda: FM Nirmala Sitharaman
  Sitharaman said the road map also provides for “identifying appropriate strategies and outlining how to enhance the capabilities and capacities of these economies to face the risks”.
  
• SBI takes possession of PC Jewellers Ltd promoters residential properties
  The lender cautioned the public not to deal with the property and that any dealings with the property would be subject to the charge of the bank for an amount of Rs 1,267 crore, as well as the amount outstanding to other secured creditors.

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.