A Fortnight of Ups and Downs in Indian Equities

ICICI Bank climbed 7.66 per cent after delivering robust Quarterly Results. Axis Bank and SBI also reached all-time highs, contributing to the rally.[EasyDNNnews:PaidContentStart]

The Indian equity market experienced a whirlwind of ups and downs throughout the second half of April 2024. Kicking off the fortnight, heightened geopolitical tensions sent shockwaves through the market, causing a sharp decline in frontline equity indices. The Nifty 50, for instance, plummeted below 21,800 on an intraday basis. Adding to the market turmoil was weakness in the US market, driven by higher-than-expected US CPI inflation data. This dashed hopes of a June rate cut, resulting in a surge in treasury bond yields globally, which negatively impacted equity markets. However, as the weeks progressed, tensions in the Middle East eased, and better-than-expected earnings from US tech giants helped restore confidence in the equity market. This culminated in the market once again reaching its all-time high by the end of the last week. The surge was bolstered by optimism surrounding corporate earnings, particularly driven by positive results from banking stocks.

Notably, ICICI Bank, the third-largest index constituent in the Nifty 50, saw a gain of over 7.66 per cent after delivering robust quarterly results. Axis Bank and State Bank of India also reached all-time highs, contributing to the rally

It wasn’t just the frontline indices that saw gains; the Small-Cap and Mid-Cap indices also hit fresh all-time highs over the past two weeks. On April 29, 2024, the Nifty Bank Index surged to a new all-time high, gaining 2.54 per cent in a single session. This sharp surge was fueled by strong fourth-quarter results from banking stocks and short covering in the index. Despite a brief dip on April 26, 2024, the Nifty Bank index opened positively on Monday, driven by upbeat results.

Over the fortnight, benchmark indices BSE Sensex and Nifty 50 posted significant gains of 1.73 per cent and 1.67 per cent, respectively. In the broader market, the S&P BSE Small-cap and S&P BSE Midcap indices also reached new all-time highs, with gains of 3.05 per cent and 2.47 per cent, respectively.

Sector-wise, the S&P BSE Metal Index stood out with a robust surge of 3.86 per cent, while the S&P BSE Oil & Gas Index gained 3.48 per cent. However, the BSE IT Index experienced a decline of 3.77 per cent over the fortnight.

Foreign institutional investors (FIIs) turned into net sellers once again, recording a significant outflow of Rs 26,401.66 crore. On the other hand, domestic institutional investors (DIIs)continued to be net buyers, with an inflow of Rs 30,524.54 crore during the same period.

Looking ahead, market volatility is expected to persist as corporate results continue to roll in, and the anticipation surrounding the election turnout adds to market jitters. Investors should brace themselves for further fluctuations and stay vigilant in monitoring market developments.

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