Equity & Indian Market Developments

 

 

Indian equities extended losses for a fourth consecutive week, their longest losing streak in five months, with the Nifty 50 declining 1.15% to 23,898 and the Sensex slipping 0.97% to 76,515. Mixed global cues, West-Asia uncertainty, a sharp rebound in crude and firmer U.S. yields kept sentiment cautious, even as a modest Friday bounce limited further damage.

 

 

Broader markets were mixed-to-soft. The Nifty Midcap 100 declined 1.55%, while the Nifty Smallcap 100 was virtually unchanged (+0.08%), aided by domestic liquidity and sustained SIP inflows. Benchmarks slipped through the 24,000 handle and closed near 23,900.

 

 

India VIX rose about 1% to 10.78, still contained but signalling a touch more caution. FIIs were net sellers of about ₹5,610 crore in the cash market over the five sessions; NSDL FPI outflows were larger at ₹8,731 crore for the week. DII buying of roughly ₹23,160 crore provided a strong cushion.

 

 

Sectorally, Oil & Gas and CPSE names outperformed as energy prices jumped. Auto, Consumer Durables, Healthcare, Pharma and IT underperformed, with Nifty Auto down about 4.0% as growth and rate-sensitive pockets absorbed the selling.

 

 

 

 

Global Market Developments

 

 

Global equities finished mixed. U.S. benchmarks ended the week barely changed — the S&P 500 rose 0.1% and the Nasdaq 0.4% — after a stronger-than-expected August payrolls print (162k vs ~56k expected) lifted September Fed-hike odds and capped Friday’s session. Germany’s DAX fell 2.0% and Japan’s Nikkei eased 2.1%. Europe was softer (CAC 40 −1.5%) and the Hang Seng slipped 0.3%. Investors monitored U.S. inflation, the Fed path and any change in U.S.–Iran talks, given the impact on energy prices.

 

 

 

 

 

Fixed Income & Debt Market

 

 

 

 

Indian bond yields moved higher as crude jumped and global yields firmed. The 10-year benchmark G-Sec yield rose 5 bps to 6.96% during the week. The U.S. 10-year Treasury rose 6 bps to 4.78% and remains near recent highs, capping the scope for a sustained rally in domestic duration.

 

 

 

Commodity Updates

 

 

Gold — Eased about 0.5% to around $4,433/oz as a firmer dollar and higher U.S. real-rate expectations after the jobs report reduced safe-haven demand.

 

 

Silver — Fell about 2.2% to $64.9/oz, tracking gold lower after an extended rally earlier in the year.

 

 

Crude Oil — Strongest week since mid-July, with Brent up about 6.4% to ~$95.0/bbl and WTI near $91.5, as U.S.–Iran strikes rebuilt a supply-risk premium.

 

 

Copper — Held recent gains on tight inventories, Congo export curbs 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 at 5.52%. WPI inflation remained elevated at 9.78% in July. Q1 FY27 real GDP grew 7.8%, ahead of the RBI’s 7.0% estimate, though the HSBC Manufacturing PMI eased to 52.8 in August.

 

 

 

 

Merchandise trade deficit widened to USD 31.98 billion in July as oil, electronics and gold imports outpaced export growth of 19.6%. The rupee ended the week at ₹94.50/USD, while forex reserves printed a record USD 741 billion (as of 28 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