The global stock market has been experiencing a series of significant events, with various indices and companies showing notable performance. The Vitol Group predicts a 'soft patch' for global oil refiners in 2024 due to new capacity in Mexico, Africa, and the Middle East. This prediction comes amidst a cautious stance adopted by ICICI Prudential AMC on new-age companies amidst rising investments.
In the Indian market, analysts warn that the best days for ITC may be over as growth and profitability begin to moderate. However, Bharat Dynamics is set to benefit as all three defence forces plan to induct Nirbhay missiles. Additionally, Natco Pharma's Q2 net profit has increased by 550% YoY.
On the international front, the Morningstar UK Index is up 2.21%, the Morningstar Germany benchmark has advanced 0.6%, the Morningstar Japan Index closed up 1.37%, and the Morningstar Hong Kong Index gained 3.73%. The Morningstar US Market Index gained 2.16% as of Tuesday's close, led by real estate, utilities, and consumer cyclical sectors.
The Nifty smallcap index marked a historic high, surging over 3% during the week, fueled by a record level of systematic investment plans (SIP) reaching approximately ₹17,000 crore per month. The week also saw a few new initial public offerings (IPO) and listings across the mainboard and small-and-medium enterprises (SME) segments.
Analysts believe that Samvat 2080 will open on a strong note and markets will witness an upward trajectory with rotational buying, if the Nifty 50 holds over 19,200 in the upcoming holiday-shortened week. However, geopolitical risks persist due to the Israel-Hamas war, but so far, it has had limited impact on the market movement.
The performance of various companies such as Boeing, Tesla, Tyson, Hologic, Illumina, Diageo, Trade Desk, Becton Dickinson, Disney, CVS, Walgreens, Gen Digital, Dominion Energy, Clorox, Bumble, and Block also had a significant impact on the market. The US Debt, South Korea's short selling ban, and the US Treasury also influenced the market, along with the performance of the global gold demand and the tentative deal between GM and UAW.
The recent decline in tensions across various dimensions, matched by falling inflation pressures and signs of moderating economic growth, have also been noted. The upcoming meeting between President Biden and President Xi, the Israeli/Hamas war, and the potential for a government shutdown on November 17th are expected to have significant implications on the market. The cooling economy, with year-over-year inflation expected to continue to fall steadily in the coming months, and a predicted slowdown in economic growth, with real GDP growth expected to fall from 4.9% annualized in the third quarter to 2.1% in the fourth, are also noteworthy developments.