The Motilal Oswal Global Market Snapshot provides a quick glance at index performances and economy updates from the Indian & global markets.
Click here to view the detailed report for January 2024
Indian Market Update
- In January 2024, the Indian stock markets remained flat, as evidenced by a slight decline of 0.03% in the Nifty 50 index. The Nifty Microcap 250 emerged as the best performing index with an impressive growth of 9.9%.
- Building on last month’s positive trend, the energy sector once again took the lead with a robust 9.8% increase. The bank index experienced a notable downturn and was the worst performer with a substantial decline of 4.8%.
- All the factor-based investment strategies delivered positive returns. Once again, the Value factor led the way, experiencing the highest increase at 8.7% for the month, followed closely by the Momentum factor with a gain of 6.2%.
- Contrary to the previous month where it held the highest contribution, the Financial Services sector turned into the worst contributor, negatively impacting the overall returns of the Nifty 500 index by 0.8%.
Global Market Update
- In the US, S&P 500 and NASDAQ 100 both experienced a 1.6% and 1.9% gains respectively in January 2024 with the Information Technology sector once again being the largest contributor to the S&P 500’s rise.
- All the emerging markets indices saw negative performance, with China being the worst performer at 10.6%. As far as developed markets are concerned, Japan emerged as the best performer at 4.6%.
- Crude oil prices has started picking up again and rose by 6.3% during January due to Red Sea tensions, reduction in US oil inventories and geopolitical tensions in the Middle East.
- Gold & Silver prices witnessed a fall of 1.2% and 2.9% respectively. Cryptocurrencies like Bitcoin and Ethereum ended on a flat note.
Economic Indicators
- India’s retail inflation has risen to a four month high at 5.7% in December, mainly due to sharp rise in food inflation. However, it is still within RBI’s tolerance band of 2 – 6%.
- GST collections in the month of January stood at Rs 1.7 lakh crores, second highest ever. Notably, this is the eleventh time in a row that it has breached Rs 1.5 lakh crores mark.
- At the recent FOMC meeting, the Federal Reserve has maintained the status quo, keeping interest rates unchanged at 5.5%, showing confidence in the US economy.
- FIIs have been net sellers at Rs. 6,593 crores across equity & debt segments. Furthermore, equity outflows stood at Rs. 25,743 crores. Rising US bond yields may have led the FII’s selling.
