New Delhi: Market Overview and Outlook
During the past week, the markets demonstrated significant upward momentum, with reduced volatility. This positive trend positions the markets for potential movement in either direction, approaching new lifetime highs. The broad markets have more than recouped the previous week’s losses.
The BSESENSEX increased by 1,341.47 points, or 1.85%, closing at 74,005.94 points. The NIFTY gained 446.80 points, or 2.03%, closing at 22,502.00 points. Additionally, the BSE100, BSE200, and BSE500 indices rose by 2.40%, 2.91%, and 3.23%, respectively. The BSEMIDCAP index surged by 4.92%, while the BSESMALLCAP index increased by 5.65%. Markets saw gains in five of the six trading sessions, including a special Saturday session for disaster recovery testing.
The Indian Rupee appreciated by 16 paise, or 0.19%, closing at ₹83.34 against the US Dollar. Meanwhile, the Dow Jones Industrial Average surpassed the 40,000 mark, closing at 40,003.59 points after gaining 490.95 points, or 1.24%, over three out of five trading sessions.
New Listings
Three companies were listed this week. Indegene Limited, which issued shares at ₹452, debuted on the BSE at ₹659.70, a 45.95% increase. It fluctuated, closing the week at ₹556.05, a 23.02% gain. TBO TEK Limited issued shares at ₹920, debuting at ₹1,380 on the BSE and closing at ₹1,463.90, a 59.12% gain. Aadhar Housing Finance Limited issued shares at ₹315, debuting at ₹314.30 on the BSE and closing at ₹348.60, a 10.67% increase.
Go Digit General Insurance Limited’s IPO, with a price band of ₹258-272, was subscribed 9.6 times overall, indicating strong market interest. The QIB portion was subscribed 12.56 times, the HNI portion 7.24 times, and the Retail portion 4.27 times, with 5.85 lakh applications received.
Upcoming Week
The upcoming week will have only three trading sessions due to holidays on Monday and Thursday, which could affect market momentum. Following this week, the general elections will enter their final stages, with exit polls expected on June 1. Markets are optimistic about the ruling party securing a third consecutive term, potentially winning around 330 seats, with allies gaining an additional 45-50 seats.
In the short three-day period ahead, expect markets to remain volatile and choppy. Immediate support for NIFTY is at 21,800-21,900 points, with strong resistance at the all-time high of 22,800 points. The strategy for the week would be to invest in select midcap and small-cap stocks that have shown strong quarterly and annual results.
Overall, the market’s upward trajectory is expected to be gradual but steady, with the bull run likely to continue despite periodic profit-taking.
