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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 gained around 1.5% each in the past week, while the mid-cap index lost around 0.8% and small-cap index lost 0.4% underperforming large-caps. Indian Markets underperformed most global markets. Sentiments in global equity markets remained positive, after the US Fed delivered a 50 bps rate cut, as the FOMC drew confidence from inflation moving toward the 2% target gradually. Market reactions in the aftermath of the event suggest a reasonable confidence in a soft-landing currently.

Sectoral indices were mixed on a week-on week basis. Nifty Auto, Metal, Real Estate, Power, Capital goods, FMCG, consumer durable and Bank Nifty ended with minor gains. While IT, Telecom, Oil and Gas and Pharma ended with losses. Nifty IT was the top sectoral loser with loss of over 3%. Within the Nifty, ICICI bank (+7.8%), M&M (+7.4%), and Nestle (+6.5%) gained the most, while TCS (-5.1%), Grasim Industries (-4.1%) and BPCL (-2.8%) lost the most. Meanwhile, both FPIs and DIIs were net buyers in the same period. Going forward, D-street will focus on the macro trends, inflation and global situation including geo-political concerns.

In Global news, in US, Unemployment data, along with the Fed’s half-point rate cut has bolster investors’ sentiment. Initial jobless claims, which came in at 219,000 for the week of Sept. 14, were lower than expected and showed a decline from the prior week. In Europe, investors digested a slew of central bank rate decisions this week and their impact on the global economy. In Asia, China kept its main benchmark lending rates unchanged at the monthly fixing. Oil prices were on track to end higher for a second straight week following a large cut in U.S. interest rates and declining global stockpiles.

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