Nifty 50 : Nifty rises this week as earnings season kick-off

Stock Market This Week

The benchmark indices ended the week higher as investors started looking into the quarterly results - Sensex was up 1.3%, while NIFTY50 was up 1%. Let us look at how the week shaped up.

The Indian market started the week on a strong note on Monday. However, in the second half, it gave all the gains to end flat with marginal gains. Investors remained cautious ahead of the earning season. Tata Motors was the biggest NIFTY gainer after reporting impressive JLR numbers. 

On Tuesday, the Indian equity market ended on a positive note. IT sector stocks were the biggest drags, ahead of the earning season. Bank, Auto, and Metal sector stocks performed well - Kotak Bank jumped more than 5%. As per experts, the latest inflow of foreign funds and strong US markets lent support to Indian stock indices.

The Indian equity market closed on the green side for the eighth consecutive day on Wednesday. TCS declared its Q4FY23 results, which came in below expectations. Pharma and Healthcare sectors had a bright day as they jumped more than 1.5% - Divi’s Lab ended 10% higher. IT underperformed at the start but recovered to close with a percent gain. FMCG, Media, and PSU Bank ended in the red.

On Thursday, the market rallied for 9 straight days - the longest rally since October 2020. Infosys was the biggest NIFTY loser - post the market close it reported its Q4FY23 numbers - PAT dropped 16% sequentially to Rs 6,128 crore, and revenue dipped 2.2%. Bank Nifty climbed by nearly 1.4%. Auto stocks also recorded gap-up gains.

The Indian equity market is to remain closed on Friday on account of Ambedkar Jayanti.

Key highlights of the week:

Tata Motors share in focus: Tata Motors' share price jumped nearly 10% this week after the company announced its global wholesales, including Jaguar Land Rover, which rose 8% YoY to 3,61,361 units in the March quarter. Global wholesales for Jaguar Land Rover came in at 1,07,386 vehicles (including CJLR volumes of 12,737 units). Jaguar wholesales for the quarter were 15,499 vehicles, while Land Rover wholesales for the quarter were 91,887 vehicles. Most brokerage firms have turned positive after the data release. Motilal Oswal Securities has given a BUY call with a target price of Rs 525 per share.

Inflation Numbers: CPI-based retail inflation eased to a 16-month low of 5.66% in March as food prices moderated on account of lower vegetable costs, offset in part by surging cereal prices. Inflation stood at 6.95% in March 2022. The consumer food price index (CFPI) moderated to 4.79%, down from 5.95% in February 2023 and 7.68% in March 2022. Rural inflation stood at 5.51%, while urban inflation stood at 5.89%.

SEBI to AIFs: SEBI has asked alternative investment funds (AIFs) to provide an option of a 'Direct plan' for investors and introduced a trial model for distribution commission to bring transparency in expenses and curb mis-selling. Also, the regulator came out with guidelines concerning excluding an investor from an investment in AIF. It came after the regulator observed inconsistency and lack of adequate disclosure in the Private Placement Memorandum (PPM) for certain industry practices.

Top buys by mutual funds in March: As per a report released, mutual Funds deployed Rs 20,700 crore, and alongside FIIs bought Rs 13,100 crore in the Indian secondary market. The majority of Indian large-cap equity mutual funds failed to beat the benchmark, with 88% of actively managed funds underperforming the S&P BSE 100 in 2022. According to the monthly data analyzed by domestic brokerages, major mutual fund houses have bought large-cap stocks that include Infosys, Reliance Industries, HDFC, and Tata Motors during March 2023.

Market this week India: Top Nifty gainers and losers

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.