Quote on Weekly Market round-Up by Shrikant Chouhan, Head Equity Research, Kotak Securities
Below the Quote on Weekly Market round-Up by Shrikant Chouhan, Head Equity Research, Kotak Securities
The Nifty-50 Index and Sensex each lost around 3% each in the past week as markets resumed the risk-off sentiment. While the mid-cap index lost around 8.5% and small-cap index lost around 10.5% in the past week. Broader markets witnessed deeper cuts, with midcaps and small-caps sharply underperforming largecaps. Markets continue to focus on the downside risks, emanating from (1) tariffs imposed by the US on India, (2) uncertain domestic growth and (3) tepid management commentary from the Q3FY25 earnings season. Sector-wise, all indices ended in red with Capital goods (-6.3%), Auto (-6.7%), Realty (-10%), Metal (-4.9%) and Power (-7.3%) sectors as major sectoral losers. Other sectors lost between 2 to 5% each. Within the Nifty, Bharti Airtel (+2,3%), Britannia (+1.4%) and Bajaj Finserv (+2.2%) gaining the most, while Eicher Motors (-12.3%), Hero Motocorp (-9.6%) and BEL (-9.4%) lost the most. FPI were net sellers in the past five days, while DIIs were net buyers in the same period. On the economy front, (1) the RBI cut interest rates by 25 bps, (2) January CPI inflation softened to 4.3% (December: 5.2%) and (3) IIP growth in December moderated to 3.2% (November: 5.2%).
In Global, in US, all the major averages are all on pace to end the week higher. The personal consumption expenditures price index is the Federal Reserve’s preferred inflation gauge, and it is due later this month. President Trump’s threat of reciprocal tariffs to be levied on trading partners in the months ahead would hit the roughly $600 billion worth of goods imported from European Union member states in 2024. In Europe, European stock markets have hit record highs earlier this week. News from Asia, India and the U.S. will work to more than double bilateral trade to $500 billion by 2030.
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