New Delhi Markets Recap: Volatility Amid Sector Rotation, Minor Gains
Last week, the markets in New Delhi traded for four sessions due to a holiday on Monday, exhibiting slight volatility yet managing to close with marginal increases. Notably, there was sector rotation with banking stocks leading on Wednesday, followed by surges in sugar, fertilizer, and railway stocks.
Concerns arise regarding the significant volume increase in fertilizer stocks during their sharp gains. The BSE SENSEX recorded gains in three out of four sessions, contrasting with the NIFTY’s split performance of gains and losses across the same sessions.
At the week’s end, the BSESENSEX concluded at 77,209.90 points, marking a modest rise of 217.13 points or 0.28%. Similarly, NIFTY closed at 23,501.10 points, up by 35.50 points or 0.15%.
In broader market trends, BSE100 and BSE200 experienced slight declines of 0.04% and 0.14%, respectively, while BSE500 managed a marginal 0.04% gain. BSEMIDCAP retreated by 0.20%, whereas BSESMALLCAP surged by 1.44%.
The swift ascent of BSESMALLCAP and BSEMIDCAP indices is a point of concern, prompting one fund house to voice valuation apprehensions in these segments.
The Indian Rupee saw a nominal rise of 3 paisa or 0.04% against the US Dollar, closing at Rs 83.53. Meanwhile, the Dow Jones Industrial Average posted gains in all four trading sessions, closing at 39,150.33 points with an increase of 561.17 points or 1.45%.
In primary market activities, last week witnessed one listing and active subscription periods for two issues, with another issue set to close in the coming week. Notably, Le Travenues Technology Limited’s shares surged on debut, while Dee Development Engineers Limited’s IPO garnered exceptional interest, oversubscribed by 102.32 times.
Looking ahead, Allied Blenders and Distillers Limited’s IPO, opening on June 25th and closing on June 27th, seeks to raise Rs 1,000 crores through a fresh issue and Rs 500 crores via an offer for sale. The company aims to use these funds to retire Rs 720 crores of debt and implement strategic management reforms, anticipating significant financial improvements.
Additionally, Vraj Iron and Steel Limited is poised to launch its IPO on June 26th, aiming to raise Rs 171 crores for expanding its manufacturing capacities and debt repayment.
With the June futures expiry imminent on Thursday, market participants face heightened volatility. The current bullish momentum suggests resilience, despite challenges in breaching key resistance levels. As the budget announcement looms in mid-July, market direction hinges on this pivotal event.
Amidst anticipated volatility and sectoral shifts, a cautious approach is advised for navigating the upcoming week, focusing on risk management amidst potential market fluctuations.
