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WEEKLY MARKET REPORT
The Indian benchmark indices erased previous week losses on a strong Friday closing amid ease in geopolitical tension after US President Trump’s statement about the decision of US direct involvement in the Israel-Iran conflict in the next two weeks.
For the week, the Sensex jumped 1,289.57 points or 1.58% to close at 82,408.17, while the Nifty50 rose 393.8 points or 1.59% to end at 25,112.40.
On the sectoral level, the Nifty Private Bank index rose 1.6 percent, the Nifty Auto index added 1.5 percent, Nifty Information Technology index jumped 1.3 percent. However, the Nifty Media index shed 3 percent, the Nifty Pharma index fell 1.7 percent, Nifty Metal and PSU Bank indices shed 1.3 percent each.
This week, Bharti Airtel added the most in terms of market value, followed by Reliance Industries, HDFC Bank, and Mahindra and Mahindra. On the other hand, Bajaj Finance, Tata Motors, Adani Ports, and Special Economic Zone lost most of their market capitalization.
Among the broader indices, the BSE Large-cap index outperformed, gaining 1 percent. In contrast, the BSE Mid-cap index declined 0.44 percent, and the Small-cap indices also reduced nearly 2 percent this week.
The Foreign Institutional Investors (FIIs) snapped a week of selling as they bought equities worth Rs 8,709.60 crore in the current week. On the other hand, Domestic Institutional Investors (DII) continued their buying in the ninth straight week as they bought equities worth Rs 12,635.58 crore.
The Indian rupee continued its losing streak in the fourth consecutive week, as it ended lower by 50 paise at 86.59 per dollar on June 20 against the June 13 closing of 86.09.
ECONOMY
India’s Trade Deficit Narrows to $21.88 Billion in May
Due to a decrease in imports of gold and oil and a slight seasonal increase in exports (totaling $38.73 billion), India’s goods trade deficit decreased from $26.42 billion in April to $21.88 billion in May, falling short of the $25 billion estimate. The services sector, meanwhile, kept a $14.65 billion surplus. Despite persistent global concerns, economists think this development reflects improved trade fundamentals.
Qatar holds emergency talks on LNG supply
Following Israeli attacks on Iran’s side of the joint North Field, Qatar convened urgent talks with leading oil companies, including ExxonMobil, Shell, and TotalEnergies. Due to probable conflict escalation or shipping interruptions across the Strait of Hormuz, QatarEnergy issued a warning about possible risks to LNG shipments, which account for 20% of the world’s supply. As operations continue, companies have modified ship itineraries in response to the 11% increase in Asian LNG prices to about $14/mmBtu.
STOCKS IN NEWS
Mahindra & Mahindra
Shares surged 6.34 percent this week, after securing regulatory clearance to acquire SML Isuzu, which will expand its commercial vehicle footprint. Market sentiment also improved on broader strength in the auto sector.
Hindustan Zinc
The stock dropped a more than 13 percent over the week, after Vedanta offloaded a 1.6% stake via block deals at a ~7% discount. The sale raised investor concerns about future overhang and parent company cash flow issues.
Vishal Mega Mart
After a short-term loss on news of a promoter stake sale, the stock rebounded strongly, gaining about 5% as it climbed near its 52-week high. Continued momentum in consumer discretionary, strong retail performance in tier 2 and tier 3 cities, and solid technicals (trading above key moving averages) kept investor sentiment upbeat.
Waaree Energies
Shares of the solar module manufacturer and exporter have increased by over 7 percent in the week. The rally was partly driven by expectations of inflows from the FTSE index rejig, where Waaree is likely to see fresh inflows of up to $49 million, adding to bullish sentiment.
Adani Ports and SEZ
The company’s shares dropped a little over 3 percent in the week, as investors are still worried about the possible danger to its flagship port in Israel due to the present conflict in the Middle East.