Stock Market Analysis, 15th To 19th July

The market suffered yet another bearish week as investor’s were looking at a correction, hoping to bring the market slightly into the green, only to be disappointedby Prime Minister Nirmala Sitharaman’s reply on Thursday with regards to the Foreign Portfolio Investor policies that were introduced with the Union Budget.

Index Performances

Both the Nifty and the Sensex were showing signs of recovery from the poor performances the last few weeks only to further crash into new lows after the Thursday announcement regarding FPIs. On Friday, the Nifty crashed by 1.53% and the Sensex crashed by 1.44%, making them lower than last weeks by 477 points (1.23%) for the Nifty and 157 points (1.36%) for the Sensex.

Sector Performances

It was yet another poor week for almost all sectors, with a majority ending far in the negative. Public Sector Utility Banks suffered especially bad, ending the week with a -5.7% change from the start. The Infrastructure sector (-4%) and Financial Services (-2.9%) seemed to continue its terrible run from last week with IT (-4.53%) also suffering some ill fate.

As far as gainers go, the Airlines industry had an almost triumphant week, netting a growth of around a staggering 7.82% in the week. Unfortunately, no other sectors seemed to have a noteworthy gain.

The week’s top gainers and losers

Large Cap – The most prosperous companies for the week were HDFC Asset Management Company, Infosys, Interglobe Aviation, netting a gain of 19.14%,8% and 7.82% respectively. Investors seemed to take very positively to Infosys’ Quarterly Financial Results, however the company didn’t perform very well on Friday and investors should take note of that. HDFC Asset Management Company also saw a massive rise with talk of a rerating in the process for the company.

Yes Bank(-11.62%), Mahindra & Mahindra (-9.6%) and Hero Motorcorp (-7.97%) were the major losers for the week, each suffering by a major downfall.

Small Cap – Small Cap seemed to have another decent week with stocks like Windsor Machines (17.8%), from the Industrial Manufacturing Sector, Filatex India (31&), from the Textiles Industry and Can Fin Homes (4.1%), from the Professional Services Industry all netting extremely high amounts.

What to look for in the next week

With the dismal performance of the market on Friday, all eyes on the government, specifically on Finance Minister Nirmala Sitharaman as to what action is to be undertaken in order to correct the markets downwards trajectory that has been occurring these last few weeks.