Get App
WEEKLY REPORT
The Indian market continued its correction for the third consecutive week amid heavy foreign institutional selling, tepid corporate earnings from IT and banks, and uncertainties surrounding the trade agreement with the US. However, the market ignored the above-normal monsoon, a 77-month low in inflation, and soft wholesale inflation.
For the week, the BSE Sensex index shed 742.74 points or 0.90 percent to close at 81,757.73, and Nifty50 fell 181.45 points or 0.72 percent to close at 24,968.40.
During the week, HCL Technologies lost the most in terms of market value, followed by Reliance Industries, Tata Consultancy Services, and Kotak Mahindra Bank. On the other hand, State Bank of India, Mahindra and Mahindra, and ITC added the most to their market capitalization.
On the sectoral level, the BSE Bank index fell 1.3 percent, the BSE Information Technology index shed 1.2 percent, BSE Capital Goods index shed 1 percent. On the other hand, the BSE Realty index added 3.7 percent, and the BSE Auto index rose 1.7 percent.
Among the broader indices, the BSE Large-cap index declined 0.5 percent, while the BSE Mid-cap index went up 1.03 percent, and the Small-cap indices also increased 1.5 percent this week.
The Foreign Institutional Investors (FIIs) continued their selling in the third week, as they sold equities worth Rs 6671.57 crore; however, Domestic Institutional Investors (DIIs) extended their buying in the 13th week as they purchased equities worth Rs 9,490.54 crore.
The Indian rupee extended the fall against the US dollar in the second week as the domestic unit fell 35 paise to 86.15 per dollar on July 18 against the July 11 closing of 85.80.
ECONOMY
RBIs climate disclosure to banks
Reserve Bank of India is close to finalising rules for banks and financial institutions to disclose and manage risks from climate change, three sources aware of the matter said. The disclosures are likely to be on a voluntary basis from fiscal year 2027 and then mandatory from fiscal year 2028. India’s financial year runs from April to March. The guidelines will require banks and financial institutions to report their exposure to climate-related risks, including physical threats like floods and cyclones, and transition risks linked to shifting toward a low-carbon economy, and the institutions will need to quantify emissions linked to their loan portfolios. Banks will also be asked to conduct periodic stress tests to gauge the impact of adverse climate events such as floods, heatwaves, and cyclones on borrowers and the economy.
ASML says growth may slow down
ASML, the world’s biggest supplier of computer chip-making equipment, warned that it may not achieve revenue growth in 2026 as chipmakers building factories in the U.S. await clarity on the potential impact of tariffs. This growth delay is despite the company’s strong Q2 bookings of €5.54 billion, 25% above analyst forecasts, driven by robust demand for its EUV lithography systems used in AI and advanced chips. Uncertainty in tariff talks has spurred chipmakers in the U.S. to delay finalizing their investments. Shares of the company up to 10.5 percent since October.
STOCKS IN NEWS
Axis Bank
The shares of the bank decreased by over 6.5 percent this week, after the lender posted a weak set of numbers for the June quarter. Profit and net interest income (NII) growth were muted, fresh slippages increased sharply owing to a technical impact, and margins contracted. Brokerages expressed disappointment over the Q1 performance and downgraded their ratings on the stock.
Wipro
Shares of Wipro surged almost 4 percent over the week, after the company reported a June quarter performance that was better than expected, driven by strong execution of large deals. However, brokerages remain in a wait-and-watch mode as the management has guided for a stronger recovery in the second half of this fiscal year.
Emcure Pharma
The pharmaceutical company’s shares increased 6.20 percent this week, after it signed a deal with Sanofi India to distribute and promote Sanofi’s oral anti-diabetic drugs, including Amaryl and Cetapin, across India. The collaboration aims to expand access to trusted diabetes therapies through Emcure’s strong national network.
Navkar Corporation
Shares of the company went up by a noticeable 22 percent this week, after it reported healthy first-quarter results, with the company swinging back to profitability after posting losses in the same period last year. The performance was aided by higher revenue and a sharp improvement in operating margins, which boosted investor sentiment.
Godrej Properties
The company’s shares showed a steady growth over the week, increasing nearly 7.5 percent, after the company announced the acquisition of a 48-acre land parcel in Bengaluru, Karnataka. Over the past five trading days, the stock of this real estate company has gained 6 percent, compared with a 0.5 percent decline in the benchmark Nifty 50 index.
Source – Moneycontrol, Reuters