Weekly Wrap: Lacklustre Earnings, Growth Concerns Weigh On Indian Equities
The S&P BSE Sensex closed 0.62 percent lower this week at 38,350.33 and the NSE Nifty 50 dropped 0.56 percent.
.jpg?rect=0%2C117%2C4000%2C2250&auto=format%2Ccompress&w=200)
Indian equity benchmarks ended lower, marking their fifth decline in six weeks. This comes after a prolonged slowdown in the economy and poor asset quality at lenders weighed on the first quarter earnings season.
The S&P BSE Sensex closed 0.62 percent lower this week at 38,350.33 and the NSE Nifty 50 dropped 0.56 percent to close at 11,047.80.
“Earnings cues have not been stimulating for the market,” Mustafa Nadeem, chief executive officer at Epic Research, said in an emailed statement. “More than 50 percent of Nifty components that have missed estimates due to slowdown.”
Nifty may consolidate between 10,750 -10,800 to 11,200 for a while before moving ahead in either direction. Though, we still remain cautious since this move can be a possible pullback as far as Nifty is below 11,200 levels.Mustafa Nadeem, Chief Executive Officer, Epic Research
Agreed Ajit Mishra, vice president-research at Religare Broking. Investors have to take a cautious stance on the Indian market in the near term, Mishra said, adding that the focus will now shift to earnings recovery and investors will also take cues from global developments such as the U.S.-China trade war and crude oil prices.
Eight of the 11 sectoral gauges compiled by National Stock Exchange ended lower this week, led by the NSE Nifty Pharma Index’s 3.03 percent fall. The NSE Nifty Media Index was the top sectoral gainer, up 1.44 percent.
How Broader Markets Performed
The broader market index, represented by the NSE Nifty 500 Index, closed 0.62 percent lower during the period, dragged down by Jammu & Kashmir Bank Ltd., Inox Wind Ltd. and Glenmark Pharmaceuticals Ltd.
How Currency Markets Performed
Indian rupee declined for the seventh straight week on Friday. The home currency depreciated 0.51 percent against the U.S. dollar to close at 71.16. Rupee ended as the fourth worst performing Asian currency this week.
Big Talking Points This Week
- Q1 Earnings Review: Worst performance in at least three years.
- The incredible sinking Argentina.
- Five years of Jan Dhan Yojana: About 20% of accounts lying dormant.
- Hong Kong protests go global, roiling China’s fractured diaspora.
- Independence Day 2019: India will spend Rs 3.5 lakh crore on Jal Jeevan Mission.
- Retail inflation falls for the first time in six months.
- Trump shows interest in buying Greenland. Denmark isn’t selling.
- Reliance Industries lays roadmap to become debt-free in 18 months.
- U.S. 30-Year yield falls to record low and curve warns of recession.
- Indian economy is suffering a cardiac arrest and just paracetamols won’t work, Says Basant Maheshwari.
Key Earnings Announced This Week
Key Events/Data To Watch Next Week
- Aug. 19: Spandana Sphoorty IPO to make market debut.
- Aug. 20: Sterling & Wilson IPO to make market debut.
- Aug 21: Reserve Bank of India to release minutes of its policy meet.