Week Gone by 02.08.24: Markets End Eight-Week Winning Streak
Sumit Poddar
Founder | Chief Investment Officer| Advisory Board AIF CAT II | Smallcase Fund Manager | Startup | Investor | ex TCS, Aditya Birla | AI enthusiast
The Indian market ended its eight-week winning streak as major indices fell over 1% on Friday, mirroring the global indices. Despite NIFTY 50 touching the all time high mark of 25,000, it declined 0.5% this week to close at 24,718. The broader market showed resilience, with the Mid Cap index falling just 0.1% to close at 47,675, while the Small Cap index rose 0.6% to finish at 54,629.
Nifty ENERGY led with a 2.5% gain this week, followed by CPSE gaining 2.3% and PHARMA up by 1.4%, while Nifty underperformers were REALTY declining by 3.7%, with IT at 3.0% and AUTO at 2.0%
Economy: India’s forex reserves hit a record $670.86 billion as of July 19, boosted by $2.57 billion in foreign currency assets, $1.32 billion in gold reserves, and $95 million in SDRs. In July, the HSBC India Manufacturing PMI dropped to 58.1 from 58.3 in June but remained high compared to recent years.
Further, Market regulator SEBI intends to introduce protective measure to curb excessive speculation in equity derivative by raising minimum contract size to 15-20 lakh from 5 lakh, upfront collection of premium and increasing ELM by 3% before expiry day and 5% on expiry day. These rules will prevent investors from over-leveraging, limit the risk and avoiding sudden price change.?
On global front, US job growth misses expectations in July as the payroll increases by 114,000 from expected 175,000. Further, The unemployment rate rises to 4.3% in July from 4.1% in June highlighting slowdown in hiring and fears in labour market.
The US FED holds interest rates at 5.25-5.5% in line with market expectations but also hinted a rate cut in september owing to ease in inflation in last two years.
SUBSCRIBE to build wealth from THEMES OF DECADE in AMRITKAAL?
Gainers4week - #Top3
#PCBL +29.5% Share price surged after group chairman projected a fivefold increase in profitability over the next five years.
#ADANIENSOL +20.0% Launch of $1 billion QIP, oversubscribed 6 times
领英推荐
#TORNTPOWER +18.9% Impressive quarterly results, 80% YoY jump in net profits
losers4week - #Top3
#AEGISLOG -17.8% Disappointing Q1FY25 results , Profits 23% lower than analyst estimates?
#BSOFT -16.8% Share price dropped post results, Margins fell 160 bps QOQ
#LODHA -12.3%? Despite 166% jump in profits, failed to meet analyst expectations by 6%
#Unlisted Equity : NSE remains the favourite in unlisted markets, other unlisted companies where interest levels are high - NSDL, Waaree Energies, Tata Capital, Swiggy, OYO, Vikram Solar and HDB . Get in touch for more …
Weekahead
The Indian markets after reaching a new high this week may witness a correction in near term digesting recent gains and rich valuations. The upcoming RBI monetary policy on 8th August is the new market stimulus along with earnings for major corporates.?
On the global front, China’s balance of trade data for July is set to be released on August 8, 2024, followed by the inflation data for the same month on August 9, 2024.
SUBSCRIBE to build wealth from THEMES OF DECADE in AMRITKAAL?