Weekly market update, July 21, 2023

India’s benchmark stock indices closed higher for the fourth straight week. The S&P BSE Sensex closed 0.94% higher at 66,684, while the NSE Nifty 50 gained 0.93%, to end at 19,745. Domestic markets witnessed a strong rally till July 20 (Thursday) as the sentiment remained upbeat due to the momentum by Q1FY24 results and foreign capital inflow on India’s healthy macroeconomic outlook even amid mixed global cues. However, on Friday, July 21, stock indices were dragged by strong losses in index heavyweights including Infosys, RIL,TCS and HUL after Infosys reported weakest June quarter revenue growth. The broader market indices, S&P BSE MidCap gained 0.52%, while the S&P BSE SmallCap advanced 1.32% during the week. On sectoral front, Nifty PSU Bank advanced the most this week, followed by Nifty Media, Nifty Bank, Nifty Pharma and Nifty FMCG. Nifty IT, Nifty Realty, and Nifty Metal were the laggards.

Analysts expect that investors will eye a host of stock market triggers in the coming week including the first quarter results of current fiscal (Q1FY24), macroeconomic data, foreign capital inflow, and global cues especially the Federal Open Market Committee (FOMC) meeting outcome along with crude oil prices. In the upcoming week, investors will be closely focused on the FOMC meeting. While a 25-basis point (bps) rate hike is widely expected, investors will be more interested in the committee’s commentary on future rate actions, seeking clues for the anticipated future rate pause. Markets will begin the week by reacting to Q1FY24 results of Reliance Industries, ICICI Bank and Kotak Mahindra bank on Monday. 

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