Weekly Big Picture : Nifty Fell 0.8% this Week, Sustains 50-DMA; Lakshmi Vilas Bank Shines on CCI Nod

Market Pulse

Confirmed Uptrend

Weekly Action

Nifty, -0.8%; Sensex, -0.7%; Nifty Midcap, -0.9%; Nifty Smallcap, -2.4%; and Model Portfolio, -0.8%.

Weekly Market Review

In the week that went by, the market remained highly volatile, with the Nifty declining for the third straight week. On Monday, the Nifty corrected 150bps and closed below its 50-DMA. However, it managed to retake the level the next day. After a subdued performance on Wednesday, the Nifty bounced back strongly on Thursday amid strong performance by the Pharma and Auto stocks. On Friday, the Nifty erased all of its previous gains and closed below the 11,750 level.

On the sectoral front, barring Realty (+1.3%) and Bank (+0.1%), all sectors closed in the red. Nifty Pharma (-2.1%), Auto (-2.0%), and FMCG (-1.8%) were the top losers.

During the week, the U.S. Federal Reserve left the interest rate unchanged and signaled possible rate cuts later this year amid economic uncertainty and drop in expected inflation.

Today, the advance-decline ratio was skewed toward gainers. Of the 2,094 stocks traded on the NSE, 892 advanced, 862 declined, and 340 remained unchanged.

Noteworthy events in the upcoming week:

●         June 28: Fiscal deficit

●        June 28: Infrastructure output

Stocks in News

Aurobindo Pharma: The stock fell 3.9% today after the U.S. FDA issued a warning letter pertaining to its API manufacturing facility situated at Srikakulam.

Tata Motors: The stock fell 0.2% today after the rating agency Moody’s downgraded the Company’s credit rating to “Ba3” from “Ba2” with a negative outlook.

Lakshmi Vilas Bank: The stock locked in 10% upper circuit after the Competitor Commission of India approved its merger with Indiabulls Housing Fin.

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