Market Pulse
Weekly Action
Nifty, -2.2%; Sensex, -2.0%; Nifty Midcap, -2.2%; Nifty Smallcap, -2.0%; and Model Portfolio, -3.2%.
Weekly Market Review
Nifty started the week on a subdued note and breached its 50-DMA, worst single-day fall in 2019. Continuing the bearish trend, it fell further in the next two sessions before closing in positive territory on Thursday. However, Friday’s session was disappointing as investors remained cautious ahead of CPI inflation data today, set to release later in the day. Nifty added one distribution day today as volumes came in higher than yesterday.
On the sectoral front, barring Nifty Pharma (+2.8%) and Media (+0.6%), all other sectors closed in negative. Nifty PSU Bank (-3.8%) fell the most followed by Nifty Financial Service (-3.1%) and FMCG (-2.4%). This week we changed the market status to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 50-DMA.
Today, the advance-decline ratio was leaned toward gainers. Of the 2,087 stocks traded on the NSE, 883 advanced, 847 declined, and 357 remained unchanged.
Noteworthy events in the upcoming week:
● July 15: WPI (June)
● July 15: Trade Balance
● July 19: FX Reserve
Stocks in News
Indusind Bank: The bank reported its Q1 FY20 results today. On a standalone basis, NII grew 34% y/y to Rs 2,843.99 crore and net profit increased 38.3% to Rs 1,432.50 crore. Asset quality weakened as GNPA came in higher at 2.15% compared with 1.15% in Q1 FY19. NNPA at 1.23% compared with 0.51% in Q1 FY19. The stock closed 2.1% lower today.
Dr Reddys Laboratories: The US FDA audited the Company’s API manufacturing plant 2 at Bollaram, Hyderabad, and issued five observations for the unit. The stock fell 0.9% today.
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