Choppy trading and week IIP data pull the market down

Equity benchmarks concluded the choppy trading on a subdued note last week. The Nifty ended the week at 11178 points, down by 0.3 percent. However, the broader markets continued to outperform the benchmark on expected lines as Nifty Midcap and small-cap indices gained 2 percent up and down. The metal and pharma sectors outshone while the financials and FMCG sector underperformed in the share market.

Last week’s panic low of 11100 points may be the key level to watch in the coming week according to the experts associated with the trade.

Some experts say that any extended breather from hereon would find its feet around the key support threshold of 10900 points’ mark in the coming weeks.

Consumer Price Index Inflation for July month rose to 6.93 percent compared to the revised June inflation of 6.23 percent. The rise may primarily be attributed to the rise in prices of vegetables, household goods, retail petrol, and metal prices like Gold and Silver.

Index of Industrial Production contracted for a fourth consecutive month. However, post lifting of the nationwide lockdown, the decline slowed down to 16.6 percent in June month as opposed to a 34 percent decline in the month of May. The manufacturing sector contracted 17.1 percent, Mining and power output declined by 19.8 and 10 percent respectively. However, these numbers are not comparable to the previous data due to ongoing conditions worldwide.

Meanwhile, India's coal import fell by 43 percent to 11.1 million tonnes in the month of July on account of a higher stockpile of dry fuel.

On the other side, national fuel demand fell by 11.7 percent due to localized lockdowns. It declined by 3.5 percent compared to June month this year. Petrol demand fell by 10.3 percent while diesel demand fell by 19.3 percent. Brent Crude prices closed higher at US$44.7 per barrel as compared to the previous week’s closing price of US$44.3 per barrel.

Gold prices ended lower at $1956 per ounce as compared to the previous week’s closing price of $2032 per ounce.

Bond yields ended higher at 5.96 percent as compared to the previous week’s closing price of 5.89 percent.

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