Markets Hit New All-Time Highs Amid Volatility | Weekly Insights & Nifty Outlook

Markets hit fresh highs last week amid volatility. Discover key stock movers and insights in our concise weekly report.

Markets Hit New All-Time Highs Amid Volatility | Weekly Insights & Nifty Outlook

Despite a choppy truncated trading week, the markets managed to reach a new all-time high last week. 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.

Fluctuating sharply

  • Markets were in a fickle mood last week, spiking up and down, ultimately closing slightly higher by 0.15% compared to the previous Friday.
  • This, of course, comes after indices hit new lifetime highs on Friday, buffeted by solid gains in a couple of key sectors. The market saw considerable volatility, impacted by sluggish monsoon progress and mixed global indicators.

The global picture

  • The S&P 500 soared to record highs last week on some reassuring macroeconomic news for the American economy.
  • Recent flash surveys and indices indicated that in June, the economy grew at its quickest rate in over two years, alongside easing inflation. The flash services PMI rose to 55.1, surpassing the anticipated 53.7, and the manufacturing PMI slightly increased to 51.7, defying expectations of a decline to 51.

Sector watch at home

  • Starting with the top performers, the private banking sector emerged as a significant winner last week, recording a 4.5% return. 
  • Sector heavyweights Axis Bank and ICICI Bank both saw gains of 4.8%, as Macquarie announced its preference for the sector due to its healthy earnings outlook.

The losers

  • Hero Motocorp was the biggest loser last week, dropping 6.1% due to overvaluation worries highlighted by Kotak Securities. 
  • Ultratech Cement fell 5.2% over the week following Ambuja Cement's acquisition of Penna Cement Industries, a move that could heighten competition for the former.

Meanwhile…

  • Private sector activity in India picked up momentum again this month, with the PMI rising to 60.9 from a five-month low of 60.5 in May.
  • JP Morgan completed its inclusion of Indian government bonds in its bond index last week, attracting nearly $2 billion of foreign inflows as a result.
  • Additionally, last week featured the launch of three mainboard IPOs. For details and our analysis on these offerings, visit the IPO Corner on Liquide.

Weekly Brief

Key Indices

Sensex: 77,210 (+0.28%)

Nifty: 23,501 (+0.15%)

Sectors

Top Gainers

Top Losers

Private Bank (+4.5%)

FMCG (-2.0%)

Financial Services (+3.1%)

Pharma (-1.6%)

Stocks

Top Gainers

Top Losers

ICICI Bank (+4.8%)

Hero Motocorp (-6.1%)

Axis Bank (+4.8%)

Ultratech Cement (-5.2%)

Other Key Data

FIIs: + 2,030.83 cr

DIIs: + 6,293.38 cr

Market Outlook

Index

Outlook

Current Value

Range

Nifty

Rangebound

23,501

23,200

23,800

Bank Nifty

Bullish

51,661

51,000

52,800

Sectors To Watch: Railways, IT, Chemicals

Stocks in Radar: Railtel Corporation, Texmaco Infrastructure, Affle, Deepak Nitrite, Sunteck Realty

Our take

  • Although the broader picture still appears fundamentally robust, the current market dynamics are non-directional, with traders on the lookout for a breakout in either direction. 
  • Consequently, we expect the Nifty to be rangebound next week, likely between 23,200 and 23,800 levels.
  • Sectors related to the budget are expected to stay in action, driven by news flow and expectations of growth-focused policies.

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