16 March 2024 — The past week witnessed a tumultuous period for Indian equity markets as concerns over higher US inflation and weak global indicators led to a sharp decline. This report delves into the key factors influencing market sentiments and provides insights into what lies ahead.
Summary:
- Indian equity markets faced significant losses due to higher US inflation and weak global cues.
- BSE Sensex declined 1.99%, and Nifty slipped 2.09% during the week.
- Only BSE Teck and IT indices ended in the green, while sectors like Realty, Metal, and Power saw substantial declines.
Market Performance:
The BSE Sensex plummeted by 1476 points, or 1.99%, closing at 72,643.43, while the Nifty slipped by 470 points, or 2.09%, settling at 22,023.35. Sectors such as Teck and IT showed resilience, while Realty, Metal, and Power indices faced significant downturns.
Among Nifty 50 stocks, only 13 delivered positive returns, with Tata Consultancy Services leading the gainers. On the flip side, stocks like NTPC, Tata Steel, and Coal India witnessed substantial declines.
Market Macros and Outlook:
Vinod Nair from Geojit Financial Services highlighted concerns over market valuation and increased volatility, impacting mid- and small-cap stocks. Bargain opportunities are expected in fundamentally sound mid-cap stocks, with a focus on FMCG and contrarian plays.
Looking ahead, global central bank decisions, especially from the US FED, BOJ, and BOE, will be pivotal. Nagaraj Shetti from HDFC Securities provided a technical outlook, indicating a weak trend with potential downside risks for Nifty in the near term.
Conclusion:
The Indian equity markets faced challenges in the past week, reflecting global economic uncertainties. Investors are advised to remain cautious and monitor central bank actions closely for market direction in the coming days.
