Closing On A Positive Note

The financial year-end rally significantly aided broader market recovery, particularly benefiting the real estate, metals and automotive sectors 

After experiencing significant fluctuations in the first week of the preceding fortnight, the Indian benchmark indices ultimately concluded the period with gains, propelled by a strong closing rally. Consequently, the BSE Sensex and Nifty 50 registered gains of 1.39 per cent and 1.38 per cent, respectively. Investor optimism was evident during the trading sessions marking the end of the financial year, aiding broader indices in making significant recoveries from the considerable downturn experienced in March 2024. [EasyDNNnews:PaidContentStart]

The BSE Mid-Cap and BSE Small-Cap indices, with gains of 2.80 per cent and 2.75 per cent, respectively, outperformed the main indices. The fiscal year 2023-24 proved to be exceptionally remarkable for the domestic stock markets, with main indices surging around 30 per cent, and broader indices witnessing a staggering growth of over 60 per cent each. Most sectors benefited from the closing rally, with the BSE Realty index, representing the real estate sector, emerging as the best-performing index with gains exceeding 8 per cent over the last fortnight. 

The Indian housing market sustained its growth momentum, with housing sales during January-March reaching an all-time high as 130,000 units were sold across the top seven cities, marking a 14 per cent year-on-year growth. Metal stocks experienced a strong rally, propelled by recent growth drivers such as India surpassing the 1 billion tonne mark in coal and lignite production, Adani Group’s venture into the metal industry with a copper refinery project, significant investment pipelines from industry majors, and vast demand potential. 

While the automotive, power and healthcare sectors attracted significant investor interest, the FMCG and IT sectors registered losses. During the last fortnight, the BSE Information Technology index emerged as the worst performer, experiencing losses of over 6 per cent in an otherwise positive market. Shares of Tata Consultancy Services Ltd., one of the primary contributors to this decline, plunged around 8 per cent following the announcement by Tata Sons to sell TCS shares worth over ₹9,000 crore. 

The primary market remained lively and robust, seeing a surge in SME IPOs that attracted considerable investor interest, as indicated by subscription levels. SRM Contractors Ltd., a company involved in engineering, construction and development, launched its mainboard IPO and experienced strong buying enthusiasm. In the past two weeks, foreign institutional investors (FIIs) turned into net sellers, while domestic institutional investors (DIIs) continued to be net buyers. FIIs recorded a notable net outflow of ₹5,997 crore, contrasting with DIIs, who bolstered the market with a substantial net inflow of ₹28,265 crore during the same period.

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