Markets pause this week after last week's turbulence
Welcome to the weekly edition of the Aftermarket Report, a newsletter where we do a quick weekly wrap-up of what happened in the markets—both in India and globally.
Catch Beyond the Charts! A newsletter where we dive into fascinating charts from the world of finance and the economy, breaking down what’s happening in a way that’s easy to understand.
Market Overview this week
With FIIs on holiday, leading to thin trading volumes, Nifty traded in a narrow range with a mostly positive bias, repeatedly testing the 23,800-23,900 zone in an attempt to break out. The broader market lagged behind Nifty, with mid and small-cap stocks closing flat for the week, while microcaps ended in the red. Despite this, interest in IPO listings remained strong. By the end of the week, Nifty closed just below its 200-day moving average at 23,813.40, marking a gain of 225 points or 0.96%.
This week, the Metals sector performed the worst, pressured by the Dollar Index hovering near two-year highs. On the other hand, Nifty Auto emerged as the top gainer, driven by anticipation of the upcoming monthly sales data. Nifty Pharma also showed strong momentum, rising 2.25% thanks to positive developments in key markets and significant product announcements.
With market volumes expected to remain thin as FIIs take a break for most of the week, it’s uncertain whether the markets will break through the resistance zone of 23,800-23,900 or stay range-bound, adopting a wait-and-watch approach for further triggers.
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you get a sense of the market performance of narrow slices of the market.
What happened in India?
SEBI suspended trading in Bharat Global Developers Ltd (BGDL) for financial misrepresentation and price manipulation, freezing ₹271.6 crore in illegal profits. The company's management and certain allottees were barred from the securities market indefinitely. Dive deeper
The Reserve Bank of India has denied banks' request for more time to classify a borrower as a "wilful defaulter." The classification process must be completed within six months to prevent asset devaluation, with a set procedure allowing borrowers to present their cases. Dive deeper
Reliance Jio lost 37.6 lakh subscribers in October, while Vodafone Idea lost 19.3 lakh. BSNL gained 5 lakh subscribers, continuing its growth, and Bharti Airtel added 5 lakh subscribers after a previous decline. Overall, India saw a net loss of 33 lakh subscribers in October, an improvement from the 1 crore loss in September. Dive deeper
Tata Investment Corp. is in the news amid market anticipation for the upcoming IPO of Tata Capital, the Tata group’s flagship financial services arm, which is expected to be valued at over ₹15,000 crore. Dive deeper
Zomato replaced JSW Steel in the BSE Sensex on Monday. Its market cap is ₹2.72 lakh crore, surpassing JSW Steel. Dive deeper
The USFDA issued an Establishment Inspection Report with Voluntary Action Status for Biocon's API facility in Bengaluru. Additionally, the company received EU approval for Liraglutide, a treatment for Type-2 Diabetes and weight management. Dive deeper
Interest rates on bank deposits are expected to remain steady until the end of this fiscal year, as banks focus on mobilizing funds to meet rising loan demand. Despite a recent CRR cut, strong credit demand will likely keep deposit rates high due to liquidity pressures. Dive deeper
EPFO added 13.41 lakh net members in October 2024, with over half from the 18-25 age group and 2.09 lakh new female members. Maharashtra led the additions with 22.18% of the total. Notable growth occurred in sectors like road transport, electronic media, and banking. Dive deeper
Housing sales in seven major cities are expected to fall, while sales value grew, driven by a rise in average housing prices. The decline in sales is attributed to fewer new launches, impacted by election-related delays in approvals. Dive deeper
Jubilant Foodworks signed an MoU with Coca-Cola India Pvt. to acquire its portfolio of sparkling beverages from authorized bottlers, effective April 2025. The agreement will enhance Jubilant FoodWorks' product offerings. Dive deeper
What happened across the globe?
Nissan and Honda agreed to merge into a joint holding company, aiming for ¥30 trillion in sales and ¥3 trillion in operating profit by August 2026. Dive deeper
The UK economy showed no growth in Q3 2024, revised down from an initial 0.1% estimate, with the services sector stagnant and production falling by 0.4%. Dive deeper
Singapore reported a rise in annual inflation to 1.6% in November 2024, up from 1.4% the previous month. Increases in healthcare and transport costs contributed, even as core inflation fell to 1.9%, marking the lowest level in three years. Dive deeper
The U.S. Federal Reserve plans to overhaul its annual bank stress tests by allowing banks to provide input on the models and hypothetical scenarios used. This revision, along with a proposal to average stress test results over two years, is intended to reduce volatility in banks' capital requirements. Dive deeper
The average rate for a 30-year fixed mortgage in the U.S. increased to 6.85% as of December 26, 2024, reflecting the highest rate since June. This rise follows adjustments in U.S. Treasury yields and the market's revised expectations regarding the Federal Reserve's rate cuts. Dive deeper
Chinese authorities plan to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025 to boost the slowing economy. This move is in response to potential economic impacts from anticipated U.S. tariff increases under President Trump's administration. Dive deeper
Arabica coffee futures approached a record high amid Brazil's weather concerns, potentially impacting yields and driving a price surge. Dive deeper
Japanese equity markets were buoyed by BOJ Governor Kazuo Ueda's hints at avoiding immediate rate hikes and positive reactions to Japan’s proposed $735 billion FY 2025 budget, significantly boosting retail stocks. Dive deeper
China's EV sales are set to overtake traditional cars in 2025, with advancements and secure supply chains propelling a 20% sales increase. Dive deeper
London's affordable housing crisis worsened, with an 88% drop in housing starts influenced by high rates and rising construction costs, increasing homelessness and rent pressures. Dive deeper
Calendars
In the coming week, We have the following quarterly results and other major events:
That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.
We’re now on Telegram, follow us for interesting updates on what’s happening in the world of business and finance. Join the conversation on today’s market action here.