Weekly Market Analysis 23-07-2021


Indian stock indices registered its weekly losses as Indian companies started to report its earnings. The benchmark BSE Sensex fell 0.31% to 52,975.80, while its broader counterpart Nifty 50 declined 0.42% to 15,856.05 on a weekly basis.

The indices took off on a negative note on Monday, following lower-than-expected HDFC Bank results and tracking weak global signs. On Tuesday, both the indices extended its losses. However, the market rebounded on Thursday gaining more than 1%. It ended marginally positive on Friday paring earlier losses of the week, but it was unable close above last week’s closing number.

Among Nifty sectoral indices, Nifty Media was the biggest loser. It lost 2.6%, followed by Nifty Auto (-2.2%) and Nifty Bank (-2%). The gainers were IT sector (1.68%), Realty (0.88%) and FMCG (0.84%). 

Nifty 50 which constitutes a lot of banking stocks saw its shares fall. IDFC First Bank lost 5.4%, IndusInd Bank declined 5.3% and HDFC Bank dropped 5.2%. Among financial services, Bajaj Finserv and ICICI Bank shares increased 3.6% and 2.5% respectively. Other stocks which performed badly during the week in Nifty 50 were Tata Motors (-5%), HDFC Life (-4.7%), Hindalco (-3.4%) and Cipla (-3%). 

Reliance Industries’ consolidated net profit declined 7.3% to Rs 12,273 crore in Apr-Jun quarter of FY22, from Rs 13,233 crore in the year-ago period. The conglomerate’s operating revenue rose 58.2% to Rs 1.44 lakh crore in the quarter, from Rs 91,238 crore in the year-ago period. The company shares were down 0.32% on a weekly basis. 

Retail sales fell by 50% in June due to the pandemic, as against the same month in 2019, according to a report by Retailers Association of India. 

There are no major Indian economic data scheduled for next week. 

Globally, the Federal Reserve’s two-day monetary policy committee meeting will start on Tuesday. Investors across the world will have a keen eye on the committee’s decision, which is likely to be out at 1400 hrs ET on Wednesday. Wall Street stock indices were trading higher and were expected close in the green. 

The Indian rupee gained 6 paise to 74.40 against the U.S. dollar on Friday. 

Brent crude futures rose 0.22% and spot gold prices fell as dollar index strengthened.