Equity & Indian Market Developments

 

• Indian equities rebounded strongly, with Nifty 50 and Sensex gaining ~1.7%, supported by a sharp decline in crude oil prices following a tentative US-Iran peace agreement and improving global sentiment.

 

• Broader markets outperformed, with Midcaps and Smallcaps rising over 3%, aided by strong domestic liquidity and sustained SIP inflows.

 

• India VIX declined nearly 12% to 12.97, indicating a significant easing in market volatility. FIIs remained sellers towards the end of the week, but DII buying continued to provide a strong cushion to the market.

 

• Sectorally, Consumption, Realty, Capital Goods and Infrastructure outperformed, while IT underperformed following Accenture's weaker revenue guidance and concerns over global technology spending.

 

Global Market Developments

 

• Global markets remained positive as moderating inflation strengthened expectations of future central bank easing. Technology stocks globally came under pressure after Accenture lowered its FY26 growth outlook, raising concerns over the pace of IT spending recovery.

 

• Japan outperformed major markets, while European markets delivered mixed performance. Investors continued to monitor geopolitical developments in the Middle East, as any change in the US-Iran negotiations could significantly impact energy prices and market sentiment.

 

          

 

Fixed Income & Debt Market

 

         

 

• Indian bond yields declined as falling crude oil prices eased inflation concerns. The 10-year benchmark G-Sec yield declined by 5 bps to 6.85% during the week.

 

• Gains were partially capped after the US Federal Reserve maintained interest rates and retained a relatively hawkish stance.

 

 

Commodity Updates

 

• Gold - Gold declined as easing geopolitical tensions and a stronger dollar reduced safe-haven demand.

 

• Silver - Silver corrected during the week amid profit-booking after a strong rally earlier in the year.

 

• Crude Oil - Crude oil witnessed a sharp decline, with Brent falling over 7%, following a tentative US-Iran peace agreement that eased supply concerns.

 

• Copper - Industrial metals remained supported by long-term themes such as infrastructure spending, energy transition and data-centre investments, despite near-term volatility.

 

 

Macro Economic Updates

 

• WPI inflation accelerated to 9.68% YoY in May, driven by elevated food and fuel prices. India's trade deficit widened to USD 28.21 billion in May, as imports grew faster than exports.

 

• Net direct tax collections rose 14.6% YoY, indicating healthy economic activity and corporate earnings resilience. India's unemployment rate increased to 5.5% in May, reflecting near-term macro headwinds.

 

• The rupee ended the week at ₹94.37/USD, while forex reserves remained comfortable at around USD 672 billion, providing external stability.

 

 

 

    Best Regards

 

    Alpha Research

 

Disclaimer: This report is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instrument.The information is based on publicly available sources believed to be reliable, but accuracy and completeness are not guaranteed. Views expressed are subject to change without notice.  Investors should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.