India overtakes Hong Kong as world’s fourth largest stock market: Daily Market Update -20 Feb 2024 | Globe Capital Market LTD.
India overtakes Hong Kong as world’s fourth largest stock market: Daily Market Update -20 Feb 2024

India’s stock market has overtaken Hong Kong’s for the first time in another feat for the South Asian nation whose growth prospects and policy reforms have made it an investor darling. The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong. That makes India the fourth-biggest equity market globally. Its stock market capitalization crossed $4 trillion for the first time on Dec. 5, with about half of that coming in the past four years.

Overview and Outlook

Global Stock Market Today

  • US equity markets were close yesterday.
  • European equity markets settled on a flat note.
  • Majority of Asian equity markets are trading in red.
  • GIFT Nifty is down by 40 points, Nifty futures are likely to open around 22150 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading lower on Tuesday as investors await fresh catalysts after U.S. markets were close for a holiday on Monday.
  • The Japan stocks advanced, while Australian stocks fell after the BHP Group pulled the markets down after the miner missed profit estimates.
  • Brent crude was above $83 a barrel.


Important news updates from the domestic front

  • Whirlpool of India: Promoter Whirlpool Mauritius will divest 24% stake at a floor price of Rs 1,230 per share, which indicates a discount of 7.6% to current market price.
  • Kotak Mahindra Bank appointed Devang Gheewalla as the Chief Financial Officer and a Key Managerial Personnel of the Bank, and appointed Milind Nagnur as the Chief Operating Officer of the Bank.
  • Torrent Power will develop four projects of pumped storage hydro, green hydrogen, solar energy generation with investment of Rs 25,000 crore in Uttar Pradesh.
  • Godrej Consumer and its arm will divest entire stake in its in Mauritius-based unit Godrej East Africa Holdings to HKG Africa Weave for consideration of Rs 30 crore.
  • CIE Automotive reported a 0.29% decline in revenue at Rs 2,240.39 crore year-on-year in the third quarter, while net profit was down 9.12% at Rs 177.05 crore. The board approved a final dividend of Rs 5 per share.
  • ONGC: The shareholders of Cyprus-based step-down unit IEL has approved the merger of five arms with itself. The unit will have 3 step-down units in Cyprus post-merger.
  • Marico introduced four gourmet style flavours in its flavoured Oats range, under the flagship brand – Saffola.


Nifty Overview & Outlook

Benchmark Nifty index ended on a flat to positive note at 22122 levels, up 81 points to its previous closing values after hitting new all-time highs i.e. 22186 levels.

Midcap index underperformed the broader markets as its ended on a flat to negative note while Small cap index traded in line with the benchmark, up 0.40%.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Nifty Consumer Durables index was at the top of the tally, rose nearly 2% followed by Nifty FMCG, Pharma and Oil & Gas indices that settled higher in range 0.5% to 1%. On the other hand, Nifty IT, PSU Bank and Realty index ended lower, down in range 0.3% to 0.67%.

Nifty index moved in line with our expectation and tested new all-time highs i.e 22126 levels as mentioned in the previous report. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21800 levels on closing basis and expect it to test 22250 and higher levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty and Finnifty futures with increase in open interest by 2.3% and 0.4% respectively. Short covering was seen in Banknifty futures with decrease in open interest by 3.6%.

On the sectoral front, long buildup was observed in Pharma, Chemicals and Telecom shares, whereas short buildup was observed in Media stocks. Short covering seen in Realty and Power stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 22000 PE and 22600 CE closely followed by 22100 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 755 Cr in the cash segment, sold stocks futures worth Rs 2107 Cr and bought index future worth Rs 720 Cr. DIIs were net buyer in the cash segment to the tune of Rs 453 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22280-22360; Supports 22000-21900

Banknifty – Resistances 46900-47250; Supports 46250-46000

Finnifty – Resistances 20670-20770; Supports 20400-20300




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