Equity & Indian Market Developments

 

Indian equities ended lower for a third consecutive week, their longest losing streak in five months, with the Nifty 50 declining 0.31% to 24,176 and the Sensex slipping 0.36% to 77,265. Mixed global cues, West-Asia uncertainty, still-elevated crude and firmer U.S. yields kept sentiment cautious, even as a Friday rebound led by IT stocks limited the damage.

 

Broader markets were mixed. Midcaps outperformed, with the Nifty Midcap 100 rising 0.52% and the Nifty Smallcap 100 adding 0.51%, aided by domestic liquidity and sustained SIP inflows. Benchmarks stayed range-bound around 24,000–24,400.

 

India VIX declined about 5% to 10.68, indicating contained near-term volatility. FIIs turned sellers into the week-end — Friday’s ₹5,040 crore outflow was the heaviest since 8 June — taking weekly net FII selling to about ₹2,060 crore. DII buying of roughly ₹19,310 crore provided a strong cushion.

 

 

Sectorally, Metal, IT, Pharma and Healthcare outperformed, with Nifty IT up about 2.5% after Nvidia’s results revived global technology sentiment. FMCG, Oil & Gas, Auto and Infrastructure underperformed; BSE FMCG fell 1.22% on sugar-price margin concerns, while BSE Metal rose 2.81% on a rebound in domestic steel prices.

 

 

 

 

 

Global Market Developments

 

 

Global equities finished mixed-to-positive. The S&P 500 rose 0.5% and the Nasdaq 0.9% on the week, helped by technology earnings and intact AI-capex hopes, even after a firmer-than-expected U.S. PCE print (3.7% YoY in July). Germany’s DAX gained 1.7% and Japan’s Nikkei added 0.6%. Europe was mixed (CAC 40 −1.0%) and the Hang Seng slipped 1.6%. Investors monitored U.S. inflation, the Jackson Hole Symposium and any change in U.S.–Iran talks, given the impact on energy prices.

 

 

 

 

 

 

Fixed Income & Debt Market

 

 

 

 

 

Indian bond yields moved higher as markets priced a tight RBI liquidity stance and stronger U.S. PCE data kept Fed-hike odds alive. The 10-year benchmark G-Sec yield rose 6 bps to 6.91% during the week. The U.S. 10-year Treasury eased 2 bps to 4.72% but remains near recent highs, capping the scope for a sustained rally in domestic duration.

 

 

 

 

 

 

Commodity Updates

 

 

Gold — Corrected about 3.3% to around $4,453/oz as a firmer dollar and higher U.S. real yields reduced safe-haven demand.

 

Silver — Fell about 3.8% to $66.4/oz, tracking gold lower after an extended rally earlier in the year.

 

Crude Oil — Weekly loss, with Brent down about 4.6% to ~$89.3/bbl and WTI near $83.4, as Hormuz-related supply-risk premia eased.

 

Copper — Extended an eight-week advance on falling LME available stocks and demand from infrastructure, energy transition and data centres.

 

 

 

 

 

 

Macro Economic Updates

 

 

Headline CPI rose to 4.45% in July from 4.38% in June, staying above the RBI’s 4% target for a second month, led by food inflation. WPI inflation remained elevated at 9.78% in July on fuel, food articles and manufactured products. IIP grew 6.7% YoY in July, moderating from a revised 8.8% in June.

 

 

 

 

 

 

Merchandise trade deficit widened to USD 31.98 billion in July as oil, electronics and gold imports outpaced export growth. The rupee ended the week firmer at ₹95.38/USD, while forex reserves remained comfortable near USD 729 billion (as of 21 August).

 

 

 Best Regards

 

 Alpha Research

 

 

 

Disclaimer: The information on this document is provided for information purpose only and is available in the public domain. It does not constitute any offer or recommendation. The views expressed by Alpha Capital Research are based on current market conditions and information available publicly. Sources: NSE/BSE, Moneycontrol, Baroda BNP Paribas Weekly Market Overview, Axis Direct Commodity Reports, Edelweiss Weekly Newsletter, RBI, SBI Market Notes.