Market Recap: Navigating the End of an Eight-Week Rally and Anticipating Future Trends

Liquide -

Markets snapped their eight-week gaining streak after Friday's battering erased the weekly gains. Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly report.

Weekly Recap

Volatility’s back!

  • The markets plummeted in the final days of the week, pulling the Nifty's weekly returns down by 0.47% compared to last Friday. The India VIX saw a significant spike, jumping nearly 11% on Friday alone in a difficult week for global markets.
  • Comparatively, broader indices showed resilience; the BSE Smallcap index advanced 0.6%, the BSE Midcap index ended on a flat note, and the BSE Largecap index slipped 0.27%.

It’s a small world…

  • Global markets faced several setbacks last week. Major tech stocks on Wall Street plummeted due to disappointing earnings reports. 
  • Additionally, slower economic growth in China, interest rate hikes by the Bank of Japan, and increasing unemployment rates in the US triggered widespread concern across major global markets.

The winners!

  • NTPC led the pack with a robust 5.9% return in a difficult week for markets overall, buoyed by encouraging Q1 earnings and a strong growth trajectory. 
  • BPCL closely followed, gaining 5.6% alongside other oil marketing companies, benefiting from improved margins and rising refining demand.

The losers!

  • Eicher Motors led the downturn last week, dropping 5.7%, as its primary Royal Enfield bike segment saw a 8% YoY decline in July sales. 
  • LTIMindtree wasn't far behind, with a 4.8% loss, amid a notably tough week for the global tech sector, driven by poor earnings and sluggish growth among leading tech companies.

Meanwhile…

  • For the first time in two years, the Bank of England reduced interest rates, cautiously lowering them by 0.25 percentage points to a still-elevated 5%. 
  • GST collections in India reached a three-month peak in July, even as the PMI for the same month saw a slight decrease.
  • The IPO market frenzy continued as three mainboard issues opened for subscription during the week. For an in-depth analysis and detailed review of these IPOs, visit: IPO Corner on Liquide

Market Brief

Key Indices
Sectors
Stocks
Other Key Data

Market Outlook

Market Outlook
Sectors to Watch
Stocks in Radar: Clean Science & Technology, Epigral, Power Grid Corporation, Adani Energy Solutions, Divi's Laboratories

Our take

  • Investors have become cautious, mindful of elevated valuations amid what appears to be a resurgence of uncertainty in the global economy, prompting them to book profits. 
  • Consequently, we expect the Nifty to remain rangebound next week between 24,200-25,000 levels.
  • Moving forward, the market trend will probably be shaped by developments in the earnings season. Additionally, updates on the global economy are poised to affect market movements.

Discover Investment Opportunities with Liquide

Unlock the potential of informed investing with Liquide, featuring pioneering tools like LiMo, an AI co-pilot for stock investing. Available on both Google Play Store and Apple App Store, Liquide offers up-to-date market analysis, expert recommendations, and real-time insights to guide your investment decisions. Download today and enhance your financial journey with Liquide's cutting-edge features.