Market Weekly Round Off + Macros by Shrikant Chouhan, Head Equity Research, Kotak Securities
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Below the Market Weekly Round Off + Macros by Shrikant Chouhan, Head Equity Research, Kotak Securities
Weekly wrap
Market correction on Friday erased the weekly gains, with both BSE Sensex and NSE Nifty 50 index ending the week lower. BSE Midcap and BSE Smallcap index outperformed the larger peers on a weekly basis. On the sectoral front, the performance was mixed. Sectoral indices like BSE Power, BSE Healthcare, BSE Oil & Gas and BSE Power outperformed and closed with weekly gains. On the other side, BSE Realty, BSE Auto, BSE IT and BSE FMCG indices witnessed weekly loss. Recent domestic data like India Manufacturing PMI at 58.1 and GST collection growth of 10% remained broadly healthy. Globally, markets reacted to outcome of Central Bank meetings. The US Fed kept the rates unchanged, while noting the sharp reduction in inflation and the uptick in unemployment. Bank of England announced 25 bps rate cut. Asian markets witnessed sharp correction on Friday. Indian equities saw FPI outflows this week. Stock specific action based on Q1FY25 earnings will continue for the next couple of weeks. Recent weakness in global equity markets will be closely monitored.
Market Macros
Oil prices rose on Friday but were poised for a fourth consecutive weekly decline due to signs of disappointing global fuel demand growth, which overshadowed concerns about supply disruptions in the critical Middle East production region. In the US, unemployment claims increased to 249,000, exceeding expectations and raising worries about labor market weakness. The ISM Manufacturing PMI dropped to 46.8, falling short of forecasts and underscoring a slowdown in economic momentum. Looking ahead today, attention will turn to US labor market data. The Non-Farm Employment Change is expected to slow to 176,000 from 206,000, while the unemployment rate is anticipated to remain steady at 4.1%.
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