As the year concludes, Indian benchmark indices have rebounded from previous losses to achieve record highs, fueled by global cues and favorable economic conditions. SBI Securities presents a comprehensive weekly market wrap, recapping the key movements in the Indian financial landscape and shedding light on significant corporate news. 

Weekly market overview

Indian benchmark indices experienced a positive week, reaching record highs, overcoming the losses of the previous week. Global cues played a pivotal role, with lower bond yields in the US (10 yr yield at 3.8 per cent) and a decline in the dollar index to 101, contributing to Foreign Institutional Investors (FIIs) continuing to invest in Indian equities. In December alone, FIIs have net-bought over Rs 66,000 crore worth of stocks in the Indian equity market, with a net buy figure of Rs 7,175 crore in the week under review. Domestic Institutional Investors (DIIs) also remained net buyers.

Sectorally, themes such as defense, renewable energy, and infrastructure outperformed, driven by robust order inflows for companies including L&T, Kalpataru Power, Suzlon Energy, and Inox Wind.

Corporate news highlights

SBI Securities highlights key corporate developments

• Tata Motors Ltd. secured an order for the supply of 1,350 units of diesel bus chassis from Uttar Pradesh State Road Transport Corporation.
• SJVN Ltd. secured a 100 MW solar project order worth Rs 550 crore under e-reverse auction conducted by Gujarat Urja Vikas Nigam.
• Suzlon Energy Ltd. secured multiple new orders for approximately 500 MW, including a 300 MW order from Apaarva Energy Pvt Ltd and two orders worth 100.8 MW each from Mahindra Susten and a leading Nordic Energy company.
• Inox Wind Ltd. secured an order worth 279 MW, including equipment supply with limited scope EPC (180 MW) and end-to-end turnkey execution (99 MW).
• L&T Ltd. secured EPC orders worth Rs 5,000 crore for power and water systems in Saudi Arabia, including setting up a 250 MWp solar PV plant, 700 MWh battery energy storage system, and water treatment facilities.
• Aarti Industries Ltd. entered into a long-term supply contract with a global agro-chem major, offering a revenue potential of Rs 3,000 crore over nine years.

The corporate news section further covers achievements and orders secured by J Kumar Infraprojects Ltd., KEC International Ltd., Kalpataru Projects International Ltd., Housing and Urban Development Corporation, GE Power India Ltd., NBCC Ltd., and Power Mech Projects Ltd.

Market outlook for 2024

Looking ahead to the next week, global cues are expected to remain muted as major markets will be closed on New Year's Day. The domestic market will focus on auto sales numbers for December 2023, GST collection data for December 2023, Manufacturing and Services PMIs, and the provisional 3QFY24 business updates from various sectors.

As 2023 concludes with a strong gain, the market is anticipated to start 2024 on an optimistic note. The report emphasises that the next big trigger for the market will be the 3QFY24 results beginning from January 11, 2024, in addition to global cues.

Nifty performance and year-end reflection

Nifty has surged by 20 per cent in CY 2023, maintaining eight years of positive returns. Nifty Midcap 100 and Nifty Small Cap 100 outperformed with returns of 45 per cent and 55 per cent, respectively. Nifty Realty emerged as the top-performing sectoral index, demonstrating an impressive surge of 80 per cent in CY 2023.

Technical analysis indicates an uptrend, with the index residing in the overbought zone for the past few weeks. While historical seasonality trends suggest potential consolidation in January, stock-specific action and sector rotation are expected to continue.

The report provides detailed technical levels, citing immediate support at 21,550-21,500 and crucial resistance at 21,830-21,860. The outlook suggests a potential extension of the upside rally to 22,050, followed by 22,200 in the short term. These insights offer a comprehensive overview for investors as they enter the new year.