Weekly Big Picture : Nifty Down 0.4% this Week; Passenger Vehicle Sales Fell 1% in May

Market Pulse

Confirmed Uptrend

Weekly Action

Nifty, -0.4%; Sensex, -0.4%; Nifty Midcap, -1.2%; Nifty Smallcap, -2.1%; and Model Portfolio, -1.2%.Weekly Market Review

Despite a positive start to the week, Nifty failed to capitalize and closed with a decline of 0.4%. The broader market performance was disappointing as Nifty Midcap and Smallcap fell 1.2% and 2.1%, respectively.

On the economic front, the IIP for April and inflation results for May were out. IIP grew 3.4% driven by the Capital Goods sector (+2.5% y/y in April), which had positive growth for the first time in three months. On the Inflation side, the figure came in at 3.05%. RBI’s Monetary Policy Committee, in its last policy meet, forecasted inflation at 3.0–3.1% in H1 and 3.4–3.7% in H2 FY20 (FY20 full-year, 3.3%).

On the sectoral front, barring IT (+0.98%) and Metal (+1.3%), all the sectors closed in the red. Nifty Realty (-3.1%), Media (-2.1%), and Private Bank (-2.1%) were the top losers.

Today, the advance-decline ratio was skewed toward decliners. Of the 2,096 stocks traded on the NSE, 514 advanced, 1,245 declined, and 337 remained unchanged.

Noteworthy events in the upcoming week:

●        June 19: M3 Money Supply

●        June 21: FX Reserve (USD)