Weekly Commentary – 2nd August 2019

Nifty50 ended below the psychological 11,000 mark with a loss of 2.5% from last Friday’s closing. All sectoral indices, apart from IT were in red. Nifty Midcap (-2.8%) and Smallcap (-4.7%) continued to underperform Nifty50. 

Market Updates:

• Core sector growth slows to 0.2% in June 2019: The growth of eight core infrastructure industries fell to its lowest in more than four years in June 2019. The index of eight core industries rose 0.2% in June, down from 7.8% in same month last year, mainly due to a contraction in oil-related sectors as well as in cement production. 
• RBI relaxes ECB end-use restrictions for corporates, NBFCs: RBI has liberalised the norms related to external commercial borrowing (ECB) by relaxing the end-use restrictions with regard to working capital, general corporate purpose and repayment of rupee loans. Eligible borrowers will now be allowed to raise ECBs from recognised lenders, with a minimum average maturity period of 10 years for working capital purposes and general corporate purposes; and with a minimum average maturity period of 7 years for repayment of rupee loans availed domestically for capital expenditure.
• India received highest-ever FDI in FY18-19: India received the highest-ever FDI inflow of $64.37 billion during the fiscal ended March 2019, said a government report. It bettered $60.98 inflow received in FY17-18