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Below the Quote on Weekly Market Round-Up by Shrikant Chouhan, Head Equity Research, Kotak Securities

The Nifty-50 Index and Sensex declined around 1.5% each in the past week, while the mid-cap index lost around 1.3% and small-cap index lost 2% underperforming large-caps. Market focus has swiftly moved on from the Union Budget, unveiled in the week, to the ongoing QFY25 earnings season and global factors. The market performance was impacted by a confluence of global factors, such as (1) a sharper-than-expected weakening of the US labor markets, (2) a sharp appreciation of USD-JPY, resulting in the unwinding of Yen carry trades globally and (3) increase in geo-political tensions in the Middle East.

Sectoral indices were largely negative a week-on week basis except for Nifty FMCG, Pharma and Media. Sectoral indices like Capital goods, Consumer Durable, Auto, Metal, Reality, Power and oil and gas list between 1 to 3%. While Bank Nifty was also weak falling around 1.5% during the week. Within the Nifty Index, Cipla (+3.1%), Eicher Motors (+2.4%) and JSW Steel (+1.6%) gained the most, while Titan (-4.4%), Hindalco (-4.3%) and Asian Paints (-4.3%) lost the most. Meanwhile, FPIs were net sellers and DIIs were net buyers in the same period. On the economy front, the RBI kept rates unchanged while broadly retaining its FY2025 growth (7.2%) and CPI inflation (4.5%) projections. Going forward, D-street will focus on the macro trends, inflation and global situation including geo-political concerns.

In Global news, in US, the Federal Reserve has indicated a cut in the bank interest rates before September and has expressed concern about the sudden unemployment jump and stagnant consumer spending. The US labour market cooled more than expected in July, adding 114,000 jobs as the unemployment rate rose. Benchmark 10-year Treasury, a crucial barometer for expectations on the US economy, fell below 4 per cent for the first time in six months. In Europe, German yields came down to the lowest in seven months on the speculation that the European Central Bank might follow the Fed and announce deeper interest-rate cuts. On the data front, final July inflation prints are expected from Germany and Italy. In Asia, China’s consumer prices rose by a more-than-expected 0.5% in July from a year ago, according to data from the National Bureau of Statistics on Friday.

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