The Indian stock markets are taking a break today in observance of Eid-ul-Adha. Trading on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) will resume on Tuesday. This closure affects all segments, including stocks, derivatives, and Securities Lending and Borrowing (SLBs). Meanwhile, the Multi Commodity Exchange of India Limited (MCX) remains closed for the morning session but will open in the evening from 5:00 p.m. until either 11:30 p.m. or 11:55 p.m.
Recent Performance of Indian Stock Markets
Record-High Indices
Last week saw the Nifty-50 Index and the BSE Sensex hitting new all-time highs, each posting marginal gains of 0.5%. The bullish sentiment in the market was largely driven by better-than-expected fourth-quarter FY24 earnings across several key sectors.
Mid-Cap and Small-Cap Surge
The mid-cap and small-cap segments outperformed their larger counterparts, with the mid-cap index gaining approximately 3.6% and the small-cap index soaring by 5%. This strong performance underscores a positive market sentiment post the Lok Sabha elections, suggesting investor confidence in the market’s stability and growth potential.
Sectoral Highlights
Most sectoral indices experienced weekly gains. Notable performers included:
- Capital Goods
- Consumer Durables
- Oil and Gas
- Auto
- Metals
- Realty
- Power
These sectors saw increases ranging between 1.5% and 5%. However, the Bank Nifty only saw slight gains, while the IT and FMCG indices each declined by around 1%.
Economic Indicators
May’s Consumer Price Index (CPI) inflation stood at 4.75%, closely mirroring April’s 4.83%. However, food inflation was higher at 8.7%. These figures will be crucial for investors as they navigate the coming weeks.
Investment Trends
Both Foreign Portfolio Investors (FPIs) and Domestic Institutional Investors (DIIs) were net buyers throughout the week, reflecting a robust investment environment.
Asian Markets: Mixed Reactions
While the Indian markets are closed, Asian markets presented a mixed bag of trends on Monday:
- Japan’s Nikkei 225: Opened bearish, declining over 700 points to 38,106.41.
- Hong Kong’s Hang Seng Index: Showed gains, rising by 100 points to 18,041.60.
- Taiwan: Saw marginal gains at the opening.
- China’s Shanghai Composite Index: Declined to 3,016 points.
Market experts suggest that the focus this week will remain on macroeconomic factors, inflation rates, and geopolitical developments. These elements will be key in determining market directions moving forward.