Its all Green this Week
Comparison of indices – closing 9th August vs 2nd August
Nifty50 had a wonderful week with strong gains on Thursday and Friday, ending up 1% over last Friday’s closing. Positive movement in both Midcap (up 1.5%) and Smallcap (up 1.2%). Sectoral indices also performed well with Auto (up 2.9%), IT (up 2.6%), FMCG (up 1.3%) leading the gainers’ chart. Media ended in red (down 2%).
Market Updates:
- Repo rate cut: RBI cut repo rate by 35 bps to 5.40% to help revive the economy. According to the Indian Chamber of Commerce, the cut in the repo rate will transmit to cheaper loans which will boost the economy at large, especially sectors such as real estate and automobiles
- India’s services sector activity returns to growth in July: Nikkei Services Business Activity Index – which measures service sector activity – jumped to 53.8 in July from 49.6 in June. Further, the Nikkei India Composite PMI Output Index – which measures both manufacturing and services – surged to an eight-month high of 53.9 in July as against 50.8 in June.
- Government to hold discussions with FPIs: Post Government decided to increase surcharge on Foreign Portfolio Investors (FPIs) operating as trusts or as association of persons, FPIs pulled out INR 2985 crore from capital markets in July. Amid continuing outflow, FM has said that the government will soon hold discussions with representatives of FPIs.
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