Mumbai, August 15: The Indian stock market ended the week on a weak note after two consecutive weeks of gains. Rising crude oil prices, ongoing geopolitical tensions in West Asia, and global uncertainties kept investors cautious, leading to pressure on major indices.
During the week, the Nifty fell by 0.83%, closing at 24,366 points. On the last trading day of the week, it recorded a slight decline of 0.12%. Meanwhile, the Sensex slipped by 70 points, or 0.09%, ending at 78,009 points, with an overall drop of 0.62% throughout the week.
Market experts noted that weaker-than-expected data from the U.S. labor market initially raised hopes that the Federal Reserve might adopt a softer stance on interest rates. However, the recent surge in crude oil prices reignited inflation concerns and shifted investors’ focus back to geopolitical developments.
Despite these challenges, the Indian market received some support from positive domestic factors. Better-than-expected corporate results, stability in the rupee, a decline in 10-year government bond yields, and a gradual improvement in foreign institutional investors’ (FIIs) participation helped prevent significant losses.
Quarterly results from companies were robust, with 33 out of the Nifty-50 companies outperforming market expectations. This indicated that despite global challenges, the earnings of the Indian corporate sector remained strong, presenting opportunities in select stocks for investors.
Large-cap stocks were affected by tensions in West Asia, while mid-cap stocks performed better, outpacing major indices. Investor interest in mid-cap companies remained strong due to better earnings prospects.
In terms of sector performance, consumer durables and real estate stocks saw good buying interest. Improved domestic demand and positive economic growth expectations supported these sectors. Public sector banks (PSUs) remained relatively strong due to solid asset quality, attractive valuations, and a favorable credit growth outlook.
Conversely, profit booking was observed in the metals, automobile, and FMCG sectors. Investors expressed concerns over rising input costs and raw material prices in these areas.
The broader market’s performance diverged from major indices, with the Nifty Midcap-100 and Nifty Smallcap-100 indices recording a 0.50% increase during the week, reflecting ongoing investor interest in mid and small-cap stocks.
Looking ahead, investors will focus on crude oil prices, developments in West Asia, U.S. retail sales data, minutes from the Federal Open Market Committee (FOMC) meeting, and economic data from China. These factors could provide insights into global economic growth and the direction of U.S. interest rates, which will also impact the Indian market.
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