Weekly Update-4 October 2024

NIFTY50

This week (ending October 4, 2024), the Nifty 50 experienced significant volatility, closing at 25,014.60, marking a 4.5% decline for the week. This is the index’s largest weekly fall since June 2022. The market was hit hard by escalating geopolitical tensions in the Middle East, which raised concerns about oil supply disruptions and led to a sharp rise in crude oil prices. India, being a major oil importer, felt the strain as these price surges increased inflation concerns and dampened market sentiment.

Foreign investors pulled back heavily, contributing to the sell-off. In the last three days, there was a massive sell-off amounting to ₹30,614 crore, further pressuring the market. As a result, the market capitalization of BSE-listed companies dropped by approximately ₹3.99 lakh crore​.

 

 

 

 

 

 

 

 

 

 

BANK NIFTY

This week, Bank Nifty experienced significant fluctuations due to a combination of external pressures and market dynamics. Starting with a downtrend, the index was largely influenced by geopolitical concerns in the Middle East, which heightened fears about rising crude oil prices, further dampening investor sentiment.

By October 4, 2024, Bank Nifty had dropped to around 51,500, a substantial decline over the week. The market has seen a consistent selling trend, especially driven by foreign institutional investors (FIIs) pulling out capital. This, combined with inflationary fears due to potential crude oil price hikes, contributed to the bearish sentiment in the banking sector.

Key support levels for the index are now seen around 51,140 and 50,500, which means that if Bank Nifty breaks below these levels, it could trigger further corrections. On the upside, resistance levels are identified near 52,625 and 53,000. However, market analysts warn that even with occasional upward movements, the broader sentiment remains cautious due to the global uncertainties affecting liquidity and economic outlook.

 

 

 

 

 

 

 

 

 

 

Top Performing Sector of the week

The Nifty Metal was top performing sector this week

Major gainers from sector include:- 

National Aluminium: up by 6.43%

APL Apollo Tubes: up by 5.02%

Jsw Steel: up by 3.22%

Tata Steel: up by 0.12%

 

 

 

 

 

 

 

 

 

Worst Performing Sector of the week

The Nifty Realty was worst performing sector of the week 

Major losers include:-

Macrotech Developers: down by 9.78%

Godrej Properties: down by 9.21%

Sobha: down by 8.98%

DLF: down by 7.57%

 

 

 

 

 

 

 

 

 

 

Important News:-

• HDFC Bank Q2 Update: HDFC Bank reported a 7% rise in gross advances to ₹25.19 lakh crore for Q2FY25, along with a 15% year-on-year increase in deposits. This signals strong growth in India’s banking sector during this period​
• SpiceJet: The airline cleared four months’ worth of pending employee salaries after settling GST dues. They also deposited Provident Fund fees for the last 10 months, addressing long-standing employee concerns
• GAIL and AM Green Collaboration: GAIL and AM Green have signed a deal to produce 350 KTPA e-methanol, a significant step towards boosting clean energy initiatives. Both companies are also exploring renewable energy projects, such as solar and wind​
• Power Finance Corporation (PFC): PFC secured a $1.27 billion foreign currency loan to support its green energy transition. This move enhances its market presence and diversifies funding options
• Bharti Airtel’s Stake in BT Group: Bharti Airtel completed the acquisition of a stake in the UK-based telecom giant BT Group for $4.08 billion, marking one of the largest M&A transactions in 2024​