Investors awaiting triggers from domestic, global data

Spurred by stellar Q3 GDP numbers, healthy performance in the manufacturing sector, strong auto sales data for February and positive global cues; the benchmark indices closed in the green for third consecutive week. NSE Nifty gained 166 points to end at 22,378, and BSE Sensex climbed 663 points to close at 73,806. On the back of cautionary steps from the regulators to AMCs over exposure to Mid-caps and Small-caps, the broader market underperformed. The Nifty Mid-cap index was down 0.3 percent and the Small-cap 100 index was nearly flat during the week.

The market jumped to new highs on March 1, the first day of the new F&O series and helped the lifted the sentiment. It is pertinent to observe that in February, FIIs have net sold nearly Rs16,000 crore worth of shares on top of nearly Rs36,000 crore of selling in January, while DIIs have remained net buyers since August. The Indian economy’s sharp acceleration in the December quarter has been bolstered by equally impressive tax collections and growing momentum in manufacturing. India’s economic growth is increasingly being powered by domestic demand, while net exports face uncertainty due to geo-political reasons. The US stock market has been highly concentrated in a few giants- Magnificent Seven. Almost 28 per cent of the S&P-500’s gains so far in 2024 come from the astounding rise of that one company Nvidia at the forefront of the boom in artificial intelligence. Nvidia’s stock is up 59 per cent in nine weeks—after gaining 239 per cent last year.

IPO Corner: After a small breather in last fortnight, the primary market is all set for a busy month ahead with several new public offerings scheduled to debut on the Street in the coming week. Next week, as many as seven companies will launch their issues — three of them will be from the mainboard segment. The mainboard IPOs of RK Swamy, JG Chemicals and Gopal Snacks will hit the street to raise a cumulative of Rs1,324 crore.

STOCK PICKS FOR 2024

V-Guard Industries Ltd, a Kochi-based company, is a leading manufacturer and marketer of voltage stabilizers. The company has a strong brand name and aggressively diversified to become a multi-product company catering to the Light Electricals sectorSunflame brand has a rich legacy in the Kitchen and Small Domestic Appliances industry and its portfolio includes chimneys, cooktops, cookers and other small appliances. Buy on declines for target price of Rs555 in medium term.

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