Indian Market remained range bound for the week.

As per FADA, the New Vehicle registration up 21% yoy basis in the month of December across categories.

SIP inflow in Mutual funds touched a new high with Rs 17610 cr. in December which is showing Indian Investors’ confidence in Equity.

As per government estimates, economy stays on fast track, likely to grow at 7.3% in FY24.

Q3FY24 earning season is going to start from this week. Market participants are expecting positive earnings from majority of sectors like Auto & Auto ancillary, Banks & NBFC, Cements, Capital Goods, FMCG, Pharma, consumer durables, Infrastructure & construction etc. driven by strong demand environment with festival season & Private capex Revival. Watch out for further clues:

The Central government has filed a caveat in the high courts, seeking to be heard before the courts pass any stay order on the restrictions imposed on usage of sugar for ethanol Production.

The government later allowed diversion of 1.7 million tonnes of sugar for ethanol production in the marketing year that started on October 1, 2023, to allay industry concerns. They said the “Sudden ban” on the use of cane juice for ethanol would have an adverse impact on capacity utilization of mills & Putting at “Risk” the Investment made in the last three years to set up plants for green fuel. This will make sugar sector in volatile mode till it gets further clarity.

The Indian government is planning to build special highways for electric vehicles on the Golden Quadrilateral, connecting major cities like Delhi, Mumbai, Kolkata, and Chennai. The goal is to have 6,000 kilometers of these electric highways within the next seven years.

These highways will have charging stations powered by green energy to support long-distance travel for electric buses and cars. The government is also in talks to replace 800,000 old, polluting diesel buses with electric ones by 2030.

This initiative is part of the larger Vision 2030 plan for public transportation. The idea is that by developing electric highways and increasing the number of electric buses, more people will be encouraged to buy electric cars for their daily commutes.

The focus is on reducing fuel consumption, cutting emissions, and promoting green mobility in line with environmental guidelines. This is long term positive development for many sectors which directly or indirectly involved in it.

Global Market update:

US Indices remained range bound for the week. The monthly Job data (Non-Pharm payroll data) came out at the end of last week which is better than expected.

The US economy added 216,000 jobs, surpassing expectations of 170,000 jobs. The US 10-year Treasury yield trading around 4%. Recent economic reports caused volatility in bond yield, with a positive jobs report initially delaying rate cut expectations, but a later report on slower manufacturing growth and lower inflation triggered a rebound in bond demand.

Many investors think that there’s a 64% chance that the Federal Reserve might start adjusting its policies, like lowering interest rates, as early as March, Initially it was 90% probability. In simple terms, the financial markets are reacting to economic data and trying to anticipate the Fed’s next moves on interest rates.

Crude oil Prices remained volatile for the week. Saudi Arabia’s decision to cut prices and an increase in OPEC output, which outweighed ongoing tensions in the Middle East. Saudi Arabia reduced the February official selling price (OSP) of its main Arab Light crude for Asia by $2 to $1.50 a barrel. OPEC’s production rose by 70,000 barrels per day to 27.88 million in December.

Despite these factors, escalating geopolitical tensions in the Middle East & disruption in supply form Libya continued to lend some support to prices. Additionally, major shipping companies are avoiding the Red Sea Route due to security concerns related to Houthi militants in Yemen causing a worry of supply chain disruptions in near term.

Primary Market Update:

In the primary market during the period 6-13 January, Mainboard IPO of Jyoti CNC opens to raise fund of Rs 1,000 crores

The IPO frenzy of the past few months has not stopped. Big names are flocking to the market, attracting the attention of business enthusiasts.

IPOs in recent times have transcended mere financial transactions, grabbing the attention of people across all age sections and is no longer confined to just seasoned investors. (The author is Managing Director, Pantomath Capital Advisors Pvt. Ltd. – A Leading Mid-Market Investment Bank)