Stock Market Analysis, 8th To 12th July

The market suffered a poor week as Investor’s were less than keen on the Indian Budget announcements that occurred on Friday (the 5^th of July). Former Finance Minister, P. Chidambaram claimed that the Budget set “unrealistic expectations” and the market seemed to comply.

How did the Indexes fair?

Both the Nifty and the Sensex crashed, with the Nifty Falling by approximately 130 points going from 11682 to 11552 over the week. Sensex seemed to suffer worse, falling by 2% from 39513 at the start of the week to 38736 at the end. This marked the worst performances for the indices in 2 months.

Sector Performances

As far as sectors go, most notably the Financial Services sector (-3.2%), the Gold and jewellery sector (-6.12%), the Oil & Gas sector (-4.14%) and the Carbon sectors (-6.68%) were among the sectors that suffered the worst. Surprisingly, despite the Government making promises for larger investment in infrastructure, the sector was amongst the worst performing ones, suffering a fall of -4.75%. It seems investors didn’t seem to find Finance Minister Sitharaman’s testimonies in the budget to be too reliable.

As fair as gains go, no sector seemed to post any noteworthy gains over the week, with Sugar (0.37%) and Healthcare Services (0.13%) being some of the only sectors to net a positive gain this week.

The weeks top gainers and losers

Large Caps- The week’s top gainers for Large Cap stocks were Sun Pharma. (8.65%), YES BANK (6.86%) & BIOCON (5.62%). A reason for Sun Pharmaceutical’s strong performance would most likely be in strong prospects of expanding its operations in the US

The week’s top losers for Large Cap stocks were TITAN Company (-13.84%), Interglobe Aviation (-13.13%) & Bajaj Finance (-9.19%)

Small Caps – The Small Cap had a successful week, even outperforming the Nifty. The top gainer’s for Small Cap this week were Kolte Patil-Developers (9.62%), Sobha (1.41%) & Mahindra Lifespace & Developers, all from the Realty Market.

What to loo

k forward to next week

With such an underwhelming performance this week, investor’s can hopefully look forward to a minor correction next week, leading to slight increase in the valuations of the indices, before the market settles down on a price. All eyes are currently on INFOSYS, who are to announce their Quarter 1 Results. This should significantly influence the IT and Tech sectors of the market and may even have a cascading effect on the other sectors due to induced investor confidence