April Market Review: Nifty 50 soars for 3rd straight month, gains 1.2%; metal index top performer

Nifty 50, which represents the country’s top 50 blue-chip companies across various sectors, closed the final trading day (Tuesday) of April, touching a historic peak of 22,783 points, marking a 0.61% increase. This surpasses its previous record high of 22,725 points.

Today’s achievement signifies the index reaching a new peak approximately six times throughout April, indicating consistent momentum and investor confidence. Furthermore, Tuesday’s rally propelled the index to a 1.24% gain, marking its third consecutive month of upward movement.

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The April rally found support from the strong performance of the banking and auto sectors, fueled by impressive March quarter earnings. However, the IT sector lagged behind due to disappointing financial results from major companies, coupled with lower-than-anticipated revenue guidance. This marked the second consecutive month of losses for the IT sector.

The Nifty Bank index saw an increase of 4.82% in April. In today’s session, the index recorded a new milestone, hitting a new lifetime high of 49,974 points, edging closer to the 50,000 mark. 

Also Read: FPIs offload 6,304 crore in Indian equities, extend selloff in debt markets

Similarly, the Nifty Auto index also reached a new record high of 22,634 points in today’s session, marking a gain of 2.51%, driven by the strong rally from Mahindra & Mahindra and Ashok Leyland and Exide Industries. Overall, the index finished April with a gain of 4.95%. 

Similarly, the real estate sector ended April on a strong note, resuming its bullish momentum after a 1% decline in March. Investors were encouraged by the business updates from major real estate players, showcasing record-breaking performances. 

With rising disposable incomes among Indians, real estate investment continues to be a preferred choice for households in India.

Also Read: Nifty 50 May series: 4 stocks where investors can park their money; do you own?

Conversely, the standout index in April was Nifty Metal, which surged by 11.12%. Metal stocks have garnered significant attention on Dalal Street in 2024, propelled by consistent rises in base metal prices, positive outlook from analysts concerning metal companies, and strong business performances in the fourth quarter. These factors have collectively bolstered investor confidence.

Meanwhile, mid-and small-cap stocks rebounded from their March sell-off prompted by regulatory concerns and high valuations. Investor confidence returned in April, leading to healthy returns for both indices and record highs being achieved. 

Also Read: Nifty 50 may hit 25,810 by December, says Prabhudas, picks 7 large cap stocks

The Nifty Midcap 100 index saw a gain of 5.81%, while the Nifty Smallcap 100 index finished April with a rally of 11.40%. 

Looking ahead, the market’s trajectory at the beginning of May will hinge on the Federal Reserve’s interest rate decision scheduled for Wednesday. Investors will be closely monitoring Chair Powell’s statements for indications regarding the timing and frequency of potential interest rate adjustments this year, particularly in light of the persistent inflationary pressures and subdued growth in Q1CY24.

During the US central bank chair’s last address, he indicated that policymakers were inclined to maintain elevated borrowing costs for a longer duration than initially expected. This stance was attributed to the absence of significant progress in curbing inflation and the sustained resilience observed in the labor market.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

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Published: 30 Apr 2024, 06:32 PM IST

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