- The BSE Sensex closed at 79,803 up by 0.52% and the Nifty 50 closed at 24,131 down by 0.31% in November 2024, driven by concerns over stretched valuations, weak performance by Indian Inc in Q2 and persistent selloffs by foreign investors.
- From a sector perspective, leading gainers were Information Technology (+6%), Teck (+5%) Consumer Durables (+3%), and Capital Goods (+2.5%) while Utilities (-6.5%), Power (-4.5%) and Energy (-3.5%) went down.
- Foreign portfolio investors (FPIs) extended their selling streak in November, driven by concerns over expensive valuations, weak Q2 earnings, and diminishing expectations of a Federal Reserve rate cut in the upcoming meeting.
- Benchmark indices Sensex and Nifty surged on 22nd Nov, ahead of state election results, with the recovery anchored by index heavyweight Reliance Industries Ltd, banking names such as ICICI Bank and State Bank of India and IT majors Tata Consultancy Services Ltd (TCS) and Infosys and Adani group shares rebounded, rising upto 5%.
- As of November 2024, India’s Securities Transaction Tax (STT) collection was INR 36,000 crore, which is nearly 97% of the budget estimate of ₹37,000 crore for the current fiscal year, amidst market rally.
- Significant escalation in the Middle-east conflict is also creating geopolitical imbalance and is driving crude prices up which also has bearing on Indian equities.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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