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Below the Quote on Weekly Market Round-Off by Mr. Jyoti Prakash, Managing Partner. Equity and PMS at AlphaaMoney

Rains and gains kind of sum up the week gone by. Nifty 50 saw a 6-session gain streak till Thursday only to fall on Friday and has recovered 2.2% from the lows of 8 Aug. India’s August flash composite PMI came at 65.2 vs. 61.1 MoM. This reading could be the highest ever if it remains at these levels in the final estimate, allaying growth concerns. India’s sovereign yield curve has seen a steepening bias. Similar trends are also seen in advanced economies with the Japanese 30-year bond yields reaching record high. The volatility of India -10-year spiked to 3-year highs on concerns of fiscal slippages.

Rupee outperformed. The pause in equity outflows from FPIs helped the currency. Hopefully, rationalisation of GST and India’s rating upgrade result in FPIs turning large buyers of Indian equities.

Investors would be hoping for lessening of friction with the U.S. administration as the 27 Aug deadline for imposition of secondary tariff approaches.

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