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Below the Quote on Market Wrap Up 18 July 2025 by Shrikant Chouhan, Head Equity Research, Kotak Securities

The Indian equity markets had a mixed week, with the Nifty-50 Index and Sensex falling 1% each, while small-caps gained 1.4% and mid-caps gained 1% over the past week. While macro data remained supportive, most large-cap. IT services companies disappointed versus estimates. Sector-wise, indices were mixed during the week. Health care (1.9%), Auto (1.8%), FMCG (1.2%), Realty (3.4%) and Consumer Durable (0.7%) gained the most. While IT (- 1.3%) and Bank Nifty (-0.9%) lost the most. Within the Nifty, Hero Moto (+4.5%), M&M (+3.5%) and Bajaj Auto (+3.4%) gained the most, while Axis Bank (-5.9%), HCL Tech (-5.6%) and Tech Mahindra (-3.2%) lost the most. Indian equity markets also turned attention to the Q1FY26 earnings season, with investors having muted expectations for the season.  On the macro front, (1) June CPI inflation moderated to 2.1% (May: 2.8%), (2) the goods trade deficit in June narrowed from May levels to US$18.8 bn, led by a sharp fall in oil and gold imports and (3) the services trade surplus remained steady at US$15.3 bn. DIIs were net buyers and FIIs were net sellers during the week.

In Global, in US, the Republican-controlled House voted 216-213 to give final passage to a bill cutting $9 billion in spending that had already been approved, sending it to President Donald Trump to become law. Stocks rose on Thursday, buoyed by fresh economic data reports along with a slew of corporate earnings releases. Federal Reserve Chairman Jerome Powell formally replied to White House OMB director Russell Vought’s July 10 letter, which asked pointed questions about the Fed’s headquarters renovation. In Asia, Japan’s core inflation cooled to 3.3% in June, coming down from a 29-month high of 3.7% as rice inflation showed signs of easing.