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Below the Quote on Monthly Market Commentary by Ashwini Shami, President and Chief Portfolio Manager at OmniScience Capital 

“July 25 was a month of market-wide correction, nearly all indices closed in red for the month with Nifty 50, midcap and smallcap indices losing 2.8% - 3.6% in July. FIIs were net sellers in July (-47k cr) after a streak of 4 months of being net buyers. The domestic inflows remained resilient with DIIs supporting the market with net buying of more than 60k cr. IT, Defence, Media and Realty Indices were some of the biggest underperformers, primarily on the valuation concerns.

Newly announced US tariff of 25% on Indian exports marred investor sentiment. While the tariff tussle might create some additional volatility, we see that the market has broadly discounted this and going forward see limited impact. RBI is expected to hold the rates steady, but there could be a 25bps rate cut as the current inflation is at the lower end of the target range. We continue to see growth and valuation comfort in Private and PSU Banks, Power, Business Services and select infra-EPC and logistics names.”

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