Investors awaiting next level triggers

Supported by moderate institutional buying for propping NAVs, positive global cues and expectations over Q4 earnings, renewed buying in some pockets of Mid-cap & Small-cap segments; the domestic market had a strong close for the truncated last week of FY2024. The Nifty rallied 230 points to 22,327 points, and BSE Sensex jumped 819 points to 73,651 points. The broader markets had a better week than benchmarks as the Nifty Mid-cap and Small-cap indices gained 1.6 percent and 1.4 percent respectively. On a weekly basis, sectoral indices posted mixed performances with Realty, gaining the most followed by Auto and Infra, and the sector which fell the most was the IT sector. It is pertinent to observe that the market performance for the fiscal year 2023-24 was quite strong with the Nifty surging 28.6 percent, and the Nifty Mid-cap 100 index up 60 per cent & Small-cap up 70 per cent.

With international crude oil prices jumping to the highest closing level since October 2023 and the Indian rupee trading slightly weaker against dollar in recent times; RBI commentary on external account will be key indicator. During the first month of the new financial year FY25, market direction will be dictated by Q4 earnings, RBI Policy Meeting on interest rates, macroeconomic data like inflation and PMI numbers and global cues. Shadow of General Elections outcome will continue to linger till first week of June.

The FY24 was a great year for IPOs with 75 issues launched in the year, the highest in two years. The strong demand for equities, propelled by the increasing number of domestic investors, laid the foundation for heightened activity in the primary market. Experts believe that the robust momentum witnessed in the primary market is expected to continue into the new financial year also.

Robust Primary Mkt

DIIs, FIIs key to mkt trend

FY24 recorded 75 IPOs, highest in 2 yrs

Rising retail investor base

Strong demand for equities

Robust momentum may continue this fiscal also

STOCK PICKS FOR 2024

Gujarat Themis Biosyn Ltd is principally engaged in the manufacturing of pharmaceuticals and medicinal chemical products. It’s been incorporated in 1981 as a joint sector company with GIIC Ltd and Chemosyn (P) Ltd.

The company is debt-free on net debt basis. Buy on declines for target price of Rs750 in medium term.

(The author is a senior maket analyst and former vice-chairman, Andhra Pradesh State Planning Board)