Weekly Commentary – 5th July 2019

Nifty50 had a good run this week from last Friday to Thursday (+1.34%). Budget did not appear to meet market expectations and Nifty 50 slipped to end marginally better than last Friday closing (+0.2%). Bank (+1.2%) and FMCG (+1.4%) pulled up whereas Auto, IT, Pharma, Realty slid. 

Market Updates:

• ICRA  estimates Indian pharmaceutical industry to grow by 11-13% in the current financial year (FY20) on the back of healthy demand from the domestic market, given increasing spend on healthcare along with improving access
• The government is likely to impose anti-dumping duty on imports of certain kinds of steel products from the EU, Japan, the US and South Korea, as the commerce ministry has started an investigation into an alleged dumping of the item following complaints from domestic players. 
• According to Crisil, scaling up and the need to build digital capabilities will lead to faster consolidation among the mid-tier information technology (IT) companies in India

Budget Highlights:

• What is cheaper – Electric vehicles, affordable houses, imported defence equipment, imported parts of electric vehicles, imported raw material for manufacture of artificial kidneys and imported wool fiber, wool tops have become cheaper.
• What is costlier – Petrol, diesel, imported auto parts, imported gold and precious metals, imported paper and paper products including printed books, imported loud-speakers, indoor and outdoor unit of split AC, imported plugs, sockets, switches, CCTV cameras, IP cameras, PVC, Vinyl flooring, Metal fittings, tiles, imported cashew kernels and cigarettes have become expensive.