Weekly Commentary – 26th July 2019

The trend seems to have reversed this week. After losing on all 4 days, Nifty50 seemed to have found support today to gain 0.29% today and end the week lower by 1.2% over last Friday’s closing. Sectoral indices were a mixed bag, Bank (down 1.5%), Auto (down 0.4%), Realty (1.1% down) were offset by gains in Pharma (up 1.7%), Media (up 5.6%) and FMCG (up 0.4%)

Market Updates:

• MF – preferred investment option for retail investors: Mutual funds are becoming a preferred investment option among retail investors and HNIs, shows the recently published HDFC MF financial report. Share of individual investors in MF assets grew from 44% in March 2014 to 54% in June 2019 overtaking institutional investors.
• Proposed IBC amendment credit positive: Global rating agency Moody’s has stated that the government’s proposed seven amendments to the Insolvency and Bankruptcy Code (IBC) will improve its effectiveness. The amendments are credit positive in general and particularly for Indian banks as they restore the primacy of secured creditors
• ACMA seeks reduction in GST for auto industry: In order to stimulate demand, Auto Component Manufacturers Association of India (ACMA) has sought reduction in the Goods and Services Tax (GST) rate to a uniform level of 18% for the entire automobile industry.