Quote on Weekly Market Wrap 13th June 2025 by Shrikant Chouhan, Head Equity Research, Kotak Securities
Below the Quote on Weekly Market Wrap 13th June 2025 by Shrikant Chouhan, Head Equity Research, Kotak Securities
The Nifty-50 Index and Sensex each lost around 1.3% each in the past week with an increase in geopolitical risk. Global equity markets were mostly positive, with news-flows around the US-China trade deal supporting the positive bias. Sector-wise, most indices ended in red (except for IT, Health care and Oil & Gas) with Capital goods (-1.8%), Metal (-1.6%), Realty (-3.7%), Bank Nifty (-1.7%), FMCG (-1.9%), Consumer Durable (-2.2%), Auto (-1.7%) and Power (-1.6%) sectors as major sectoral losers. Other sectors lost between 0 to 1% each. While sectors including oil and Gas (+0.3%), Nifty IT (+3.3%) and Nifty Pharma (+1.2%) reported gains for the week. Within the Nifty, Tech Mahindra (+5.5%), Wipro (+4.8%) and ONGC (+4.6%) gained the most, while Eternal (-5.1%), Adani Ports (-4.4%) and Shriram Finance (-3.6%) lost the most. Indian equity markets also turned attention to the Q4FY25 earnings season, with investors having muted expectations for the season along with geo-political risk. On the economy front, the RBI MPC reduced the repo rate by 50 bps to 5.5% while the stance was shifted back to “neutral” and announced that the CRR will be reduced by 100 bps to 3% in four tranches of 25 bps each between September and November. Meanwhile, May CPI inflation moderated to 2.8% (April: 3.2%). Both DIIs and FIIs were net buyers during the week.
In Global, U.S. Treasury, yields fell on Friday, amid a global flight to safety in the wake of Israeli airstrikes on Iran. The yield on the benchmark 10-year Treasury moved 2 basis points lower to 4.334%. Crude futures jumped as much as 13% Thursday evening after Israel launched airstrikes against Iran without U.S. support, drawing concerns over the supply outlook from the oil-rich Middle East region. Global benchmark Brent futures with August delivery surged 5.61% to $73.25 per barrel
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