Domestic markets remain choppy as US markets soar.

Domestic as well as international markets closed the week in green. IT / tech stocks led the rally globally. Domestic broad market Index – Nifty 50 created history by reaching new highs, touching the 22,297.50 mark on Thursday, 22nd February 2024. Meanwhile the same day Japanese Nikkei also reached a 34 year high. Positive global sentiments fueled this rally. The week ended with Nifty 50 gaining about 0.8% and the Nifty Midcap 150 Index and the Nifty Small cap 250 Index, were flat recording marginal gains or 0.4% and 0.5%, respectively.

Nifty Realty was the best performer, gaining, 4.1%, followed by Nifty Consumer Durables and Nifty FMCG gaining 2.0% and 1.5% respectively. Whereas Nifty IT, Nifty PSU Banks and Nifty Oil & Gas were at the bottom losing (-) 1.1%, (-) 0.8% and (-) 0.8% respectively.

The AI chipmaker, Nvidia’s stock price soared, propelling rally in the tech stocks in US and Europe. Consequently, the tech heavy Nasdaq^ gained 1.7%. Meanwhile S&P 500^, Dow Jones^, and FTSE^ also closed the week in green, gaining 1.6%, 1.2%, and 1.2% respectively. Nikkei gained 1.6% this week after touching record highs on Thursday. Nikkei’s performance can be attributed to outflow from Chinese markets and local households investing in order to take advantage of the government led savings scheme – a tax free stock investment program. Hang Seng and Shanghai Composite Index also closed the week on a positive note, gaining 3.3% and 3.2% respectively. While KOSPI was marginally negative and ended the week (-) 0.3% down.

MACROS Update:

Brent crude prices jumped during the week and then dropped to settle at $ 82.57.

The rupee rose slightly to settle at Rs 82.93 against the US dollar.

Gold prices moderated slightly to settle at Rs 61,692 per 10 grams.

The 10 Yrs G-Sec was at 7.08% compared to its last Friday close of 7.11%.

Source: www.nseindices.com; google finance, MCX Gold Prices; www.rbi.org.in; Morningstar and tradingeconomics.com

Data for week ended on February 23, 2024. ^ closing data for the week (Fri – Thu)

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