Weekly market update, Aug 11, 2023

The India’s benchmark indices fell for the third week in a row following RBI’s decision to impose a 10 per cent incremental cash reserve ratio to absorb surplus liquidity from the banking system after the withdrawal of the ₹2,000 currency notes. The S&P BSE Sensex fell 0.61% and NSE Nifty 50 was lower by 0.46%. The Reserve Bank of India (RBI) conducted its third monetary policy committee (MPC) meeting for the current fiscal (FY24) during the week and left the repo rate unchanged at 6.5 per cent, among other key decisions. However, the central bank raised concerns on the inflation front due to uneven monsoon in some parts of the country which has led to an increase of vegetable prices. The broader market indices ended the week higher in trade; the S&P BSE MidCap Index was gained 0.89%, whereas S&P BSE SmallCap Index was 0.63% higher. On sectoral front, Nifty Media advanced the most this week, rising over 7% in the last five days of trade. Nifty Bank, Realty and FMCG, on the other hand, declined in trade this week.

Meanwhile, Analysts expect that Investors will eye a host of stock market triggers in the coming week including macroeconomic indicators such as retail inflation, wholesale inflation, trade deficit data, rupee’s movement to global cues, along with foreign capital inflow.

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