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"Domestic equities witnessed a sluggish week and ended with mild gains. FM’s economic package announcement, diminishing rate of domestic infection and progress in vaccination, in spite of rapid increase of Covid cases globally, swayed the domestic market this week. Extension of emergency credit guarantee scheme to MSME’s and subsidised financing to small borrowers will be a boost to the Microfinance and NBFC sectors. Despite easing restrictions, the manufacturing PMI data for June contracted to 48.1  from 50.8 in the previous month. RBI in its Financial Stability Report indicates that Gross NPA percentage could climb to a baseline of 9.8% by March’22. The ballooning of the new Delta variant globally is taking a toll on the international markets.

In the coming week, the domestic market will continue to track cues from the global markets in order to gain direction in movement. Reducing covid cases and progress in vaccination domestically will continue to pump optimism in the market. Services and Composite PMI data are the two major economic data awaiting release next week"

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