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WEEKLY REPORT
The Indian equity market extended the fall in the second consecutive week, ending on July 11 amid volatility led by uncertainty over the US tariff plan, a disappointing start to the earnings season, and a delay in finalising the India-US trade pact.
For the week, the BSE Sensex index declined 932.42 points or 1.11 percent to end at 82,500.47, and Nifty50 shed 311.15 points or 1.22 percent to finish at 25,149.85.
On the sectoral, BSE Telecom index shed 4.4 percent, BSE Information Technology index fell more than 3 percent, BSE Consumer Durables shed 2.7 percent, BSE Metal, Energy, Auto, PSU Bank, and Oil & Gas down 2 percent each. However, the BSE FMCG index added 2 percent, while the Power index rose 0.6 percent.
During the week, Bharti Airtel lost the most in terms of market value, followed by Titan Company, HCL Technologies, and Tata Consultancy Services. On the other hand, Kotak Mahindra Bank, Hindustan Unilever, and Bajaj Finance added the most of their market capitalization.
Among the broader indices, the BSE Large-cap index declined 1 percent, the BSE Mid-cap index declined 1 percent, and the Small-cap indices also reduced 0.6 percent this week.
The Foreign Institutional Investors (FIIs) extended their selling in the second week, as they sold equities worth Rs 4,511.12 crore; meanwhile, Domestic Institutional Investors (DIIs) continued their buying in the 12th week as they bought equities worth Rs 8,291 crore.
The Indian rupee snapped a two-week gaining streak, falling 41 paise to 85.80 per dollar on July 11 against the July 4 closing of 85.39.
ECONOMY
UK Economy shrinks for the second month
Britain’s economy contracted unexpectedly for a second consecutive month running in May in an increasingly uncertain global environment. The Office for National Statistics said the Gross Domestic Product(GDP) declined by 0.1 per cent after a 0.3 per cent drop in April. The drop came despite some strength in the services sector, with declines in both industry and construction offsetting that gain. The data adds to growing concerns about the UK’s economic trajectory and poses challenges for the government’s fiscal planning.
RBI’s ₹25,000 Crore Bond Buyback
The Reserve Bank of India (RBI) will hold a buyback auction of three government securities (G‑Secs), totaling ₹25,000 crore. This is the third buyback announcement in this financial year. The buyback auction of three government bonds-yielding 7.27%, 5.63% and 6.99% maturing in April 2026, will be held on July 17. This move supports the debt management strategy and may ease pressure on bond yields. It’s part of broader efforts to stabilize the financial sector and manage interest rate dynamics.
STOCK IN NEWS
Glenmark Pharmaceuticals
The shares of Glenmark Pharma jumped over 18 percent this week. This comes after the company announced that its subsidiary has signed an exclusive global licensing agreement for its investigational asset ISB 2001 with New York-based AbbVie.
Tata Elxsi
Shares of Tata Elxsi slipped almost 2.5 percent after the company reported a sharp drop in June quarter earnings, triggering concerns over demand headwinds and margin pressure. The disappointing performance also prompted global brokerages to cut estimates and maintain bearish views on the stock.
Bharti Airtel
Shares slipped 4.88 percent over the week, after UBS downgraded the stock amid expensive valuations. The brokerage is expecting a 10 percent ARPU hike over FY25-28, with later years largely being driven by secular factors. Even the FY26 tariff hike faces the risk of being delayed or coming in with a lower magnitude than anticipated.
IREDA
Indian Renewable Energy Development Agency (IREDA) slipped 4.36 percent in the week, after its asset quality took a sharp hit in the June quarter, overshadowing strong loan growth and denting investor sentiment. The state-run lender reported a 35.7 percent year-on-year drop in net profit to Rs 247 crore, largely due to a rise in bad loans.
HUL
Hindustan Unilever shares jumped over 6 percent after the company announced Priya Nair as its new MD & CEO, succeeding Rohit Jawa, who steps down after a two-year stint. Nair, currently President of Beauty & Wellbeing, will be the first woman to lead HUL in its 92-year history. She oversees a €13.2 billion global portfolio, including brands like Dove, Sunsilk, Clear, and Vaseline.
Source – Moneycontrol, Reuters, Economic Times