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WEEKLY MARKET REPORT
The Indian equity indices erased all the previous week’s gains, losing 1 percent in the volatile week ended June 13 amid geopolitical tensions after Israel strikes on Iran, which led to a sharp jump in crude oil prices and uncertainty over the US-China trade negotiations. However, 75-month low CPI inflation and the progress of monsoon provided some relief to the Indian markets.
For the week, the BSE Sensex index shed 1,070.39 points or 1.3 percent to end at 81,118.60, and Nifty50 fell 284.45 points or 1.13 percent to close at 24,718.60.
Taking a look at the broader market indices, the BSE Large-cap Index decreased 1 percent, the BSE Mid-cap Index also shed 1 percent, while the BSE Small-cap index ended on a flat note.
On the sectoral front, the Nifty Realty index fell 3 percent, the Nifty PSU Bank index down 2.3 percent, Nifty FMCG shed 2 percent, Nifty Bank fell nearly 2 percent, and the Nifty Metal index declined 1.5 percent. However, the Nifty Information Technology index added 3 percent, and the Nifty Media, Pharma indices rose more than 1 percent each.
This week, HDFC Bank lost the most in terms of market value, followed by ICICI Bank, Reliance Industries, and State Bank of India. On the other hand, Tata Consultancy Services, HCL Technologies, and Infosys added the most to their market capitalization.
The Foreign Institutional Investors (FIIs) extended their selling in the fourth straight week as they sold equities worth Rs 1,246.51 crore. On the other hand, Domestic Institutional Investors (DII) continued their buying in eight consecutive weeks as they bought equities worth Rs 18,637.29 crore.
The Indian rupee extended its fall for the third consecutive week, as it ended lower by 46 paise at 86.09 per dollar on June 13 against the June 6 closing of 85.63.
ECONOMY
India’s retail inflation cools down
According to government data published on June 12, retail inflation in India decreased to a 75-month low of 2.82 percent in May from 3.2 percent in April, while food inflation fell below 1 percent for the first time in almost four years. For the fourth consecutive month, headline inflation has stayed below the 4 percent midpoint set by the Reserve Bank of India (RBI). For three months in a row, food inflation, which accounts for a significant portion of the consumer price index, has stayed below 3 percent.
Despite a decline in food inflation, some categories continued to witness a faster pace of increase in prices. For example, Milk inflation rose to 3.15 percent in May compared to 2.72 percent in April.
OECD revises global growth for 2025-26
Global equity funds attracted net inflows for the first time in four weeks in the week through June 11, driven by a benign U.S. inflation report and developments on a U.S.-China trade deal, though simmering Middle East tension tempered investor interest.
Investors acquired a net $3.19 billion worth of global equity funds during the week, snapping a three-week-long string of selling, data from LSEG Lipper showed.
STOCKS IN NEWS
One97 Communications
Paytm shares decreased almost 8 percent in the week, the reason being, the Finance Ministry’s clarification on dismissed reports about the possible introduction of a merchant discount rate (MDR) for UPI payments.
Indigo
Shares of the aviation company reduced over 5 percent over the week, after an Air India Dreamliner en route to London crashed shortly after takeoff from Ahmedabad, killing 241 people on June 12. Other aviation stocks also saw a sharp decline after this news.
Eternal
The food delivery app’s shares decreased nearly 5 percent this week from June 9 to June 13, amid buzz around ride-hailing platform Rapido’s possible entry into the food delivery business with significantly lower commission charges.
Adani ports and SEZ
Shares of the company reduced over 4 percent this week, as the escalating war between Israel and Iran raised concerns over disruption at the port in Israel. Adani Ports owns a majority stake in Haifa Port in Israel. The company acquired the port for a total consideration of $1.18 billion in 2023. The port is one of Israel’s major seaports.