Weekend Investing Daily Byte – 1 April 2024

2 min read

Market Outlook

We closed the previous financial year on a high note, with expectations set for recovery towards the end. The recent sessions, including today’s, have confirmed that the bulls are not only back but are making a significant impact. Nifty opened with a gap up, buoyed by positive news such as India’s upgrade by rating agencies to the fastest-growing economy for calendar 2024, along with the anticipation surrounding the upcoming elections, which the market seems to believe won’t offer much contest.

Nifty Heatmap

HDFC Bank saw a notable increase of 1.5%, with State Bank of India also climbing by 0.8%. TCS and Wipro saw gains, though Infosys lagged slightly. The auto sector faced some downturns amidst news of a potential sales slowdown, reflecting in some auto stocks’ performance today. Contrarily, the steel and cement sectors, along with energy and power stocks like Coal India and ONGC, demonstrated strength. Despite reports of a slowdown in real estate sales, stocks like DLF surged, possibly due to the exceptional sales figures they’ve posted in the recent past, suggesting that even a slowed growth rate remains robust.

Sectoral Overview

Sector-wise, real estate led with a 4.4% increase, followed by metals at 3.7%, showcasing the rapid movement these sectors can exhibit when investor sentiment turns bullish. On the flip side, IT showed modest gains, while consumption stocks remained flat, and FMCG dipped by 1.1%, with autos also in the red. This mixed performance reflects varying sectoral momentum, with FMCG and autos particularly disappointing amidst broader market optimism.

Mid & Small Cap Performance

Midcap indexes have shown dramatic recovery, nearing new highs after rebounding from lows around 16,800 to surpass 18,000. Small caps are also on a recovery path, though not fully recuperated.

Nifty Bank Overview

The banking sector, particularly Nifty Bank, is showing signs of breaking out of its recent range, indicating readiness for a potential upward movement as the election fever heats up.

Nifty Metal

Metal index has come extremely sharply. 15% up almost in ten days, ten trading days.

Nifty REALTY

Real estate index also up almost twelve to 15% in the same time period.

Nifty FMCG

However, the FMCG sector remains a concern, failing to gain momentum despite the broader market’s recovery. This stagnation, especially in a sector crucial for economic health, warrants attention, especially with potential impacts from the upcoming monsoon season and its implications for consumer goods.

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    Weekend Investing Daily Byte – 1 April 2024