Nifty 50 gained 28.6⁒ in fiscal 2023-24, marking its best performance in the past three years and also beating most other major markets. The January-March quarter saw the benchmark rise 2.74⁒, continuing a streak of four consecutive quarters of gains. The Nifty Smallcap index achieved its best performance last fiscal with a surge of 70⁒, while the Nifty Midcap index soared 60⁒. The yield on government bonds fell 26 basis points during the fiscal year, following a three-year increase of 118 basis points. The rupee had its third straight quarterly decline and a 1.5⁒ decline in the fiscal year ending March 31. Nevertheless, it performed better than its main Asian competitors, which fell 1.5⁒ to 6⁒ in the March quarter due to the pressure from reduced chances of a US rate cut, which strengthened the value of the dollar.

Domestic Markets Last Week

• Indian stocks reported second straight weekly gains in a week cut short by holidays. Financials and automobile shares led the way, as the central bank loosened rules that lenders had been following when investing in alternative investment funds. Also, a report from Nomura said that investors showed more interest in public sector banks because of their lower loan-to-deposit ratios than private sector banks. Automobile shares were up ahead of sales data for March slated to be released by auto companies on Monday.
• Government bond yields ended at the end of the financial year as the Centre planned to borrow a lot less money from the market in the first half than expected. On Wednesday, the government borrowing calendar for April-September was released, showing that it will borrow ₹14.13 trillion rupees during the period. This improved investor sentiment. In the fiscal year 2023-24, benchmark bond yields were down by 26 basis points.
• The rupee fell marginally due to weak Asian peers and because of strong dollar demand from local companies on Thursday. The dollar had strengthened against major currencies due to weak data from the European markets and after the US Fed Governor Waller indicated that there is no rush to cut policy rates. The rupee declined 1.5⁒ in the fiscal year ended March 31 and for the third straight quarter.

Global Markets Last Week:

• US stocks reported modest weekly gains on Thursday. The S&P 500 benchmark index had its best first quarter in five years, as investors looked over the latest economic data and anticipated the next inflation number. Investors were optimistic about stocks related to artificial intelligence and thought the US Federal Reserve would start cutting interest rates this year.
• Treasury yield rose in a brief session on Thursday as fourth-quarter economic growth was revised up and the economy appeared prepared to avert recession. The US Commerce Department reported in its third estimate of fourth-quarter GDP that consumer spending and business investment in non-residential structures like factories drove GDP growth to 3.4⁒, up from 3.2⁒.
• The US dollar index reached a six-week high on Thursday after the US Fed Governor Waller indicated there's "no rush" to soften monetary policy. The dollar rose after Thursday's better-than-expected US economic figures were hawkish for Fed policy. Initial unemployment claims declined 2,000 to 210,000 for the week ended March 23, according to a Labour Department report released Thursday.

Corporate Bonds

Secondary Market

Yields ended steady for the week but eased by 4-5 basis points on Thursday across tenure during the start of the trade as the government's planned borrowing for the first half of the year was lower than expected. Some insurance companies were buying corporate bonds last week.

Outlook For This Week

Domestic shares are likely to open firm and may rangebound amid a lack of fresh cues on Monday. Government bonds and the local forex market will be shut on Monday for the new financial year. Money markets take cues from the US personal income and outlay data for February to be released on Tuesday.

In Other news

• India's Apr-Feb fiscal deficit at ₹15.01 trillion, hits 86.5⁒ of FY24 target.

• Core sector growth bounces back to a three-month high in February.

• RBI releases MPC schedule for FY25, first interest rates decision on Apr 5.

• Banks' GNPAs set to improve further to 2.1⁒ by FY25: Care Rating.

• Gold price continues to glitter in FY24; outlook bullish for next fiscal year.

• Central govt to borrow 53⁒ of full-year target in the first half of FY25.

• Jammu and Kashmir news: Avalanche hits near Hung; several tourists stranded.

• Centre orders mandatory declaration of wheat stock position from April 1.

• India is keen on trade deals with the UK, and Oman in PM Modi's probable next term.

• Cash-strapped Pakistan needs to get India onboard on trade matters.

• Govt's e-marketplace GMV touches ₹4 trillion in FY24.

• Blast in Manipur near Assam border damages 2 shops, Assam Rifles launches probe.