Stock Market Report: July- Week 3, 2023

Weekly Wrap up

The stock markets set the stage for an exhilarating climb from Monday to Thursday, like a determined mountaineer scaling new heights. The Indian indices surged, fueled by good results from IT companies and the rally in BankNifty, primarily because of the HDFC merger.

Just like a gripping adventure, Nifty raced towards the highly anticipated 20,000 mark, making a breathtaking high of 19,991. Investors held their breath as the target seemed within arm's reach, only around 10 points away! But as Friday arrived, the global markets seemed to whisper an unforeseen twist in the story.

As the week concluded, Nifty dipped on Friday, as international markets faced headwinds. IT stocks dragged the markets down as stocks of Infosys, TCS, and others fell over 8% and 2%, respectively.

Overall, the Nifty ended the week with a gain of 1.08%, whereas the Nifty500 ended with a gain of 0.95%. Index heavy-weight Reliance also witnessed some selling pressure after the demerger, as the stock tumbled over 3% on Friday.

The week may have ended with a dip, but the journey to the coveted 20,000 mark continues. Despite the turmoil end of the week, other events did cheer investors.

First was the demerger of Reliance- 'Jio Financial Services', which was valued at Rs 261.85 per share- much higher than analysts’ estimates.

Followed by the stellar listing of the Utkarsh Small Finance Bank, which closed the day with a gain of almost 92% from its IPO price.

Leaders & Laggards

Regarding sectors, Pvt Banks, Fin Services, Pharma and  Infra were the top performers for this week, whereas IT was the biggest drag.

Despite the fall in the markets on Friday, Quick Short was the top-performing model with a total return of 6.78%, followed by Back Up, which returned 5.95% in the 3rd week of July.

On the flip side, Nightcrawler and High Five were the two underperforming models, with -0.38% and -0.99%, respectively.

JINDALSAW, or Jindal Saw Limited, a company engaged in the manufacture and supply of tube and tube fittings of basic iron and steel and the mining of iron ores, returned a total of 40.13% as a part of the 'Sector Superstar' model.

ZENSARTECH, or Zensar Technologies Limited, a software and infrastructure services company, which provides a range of information technology services and solutions, returned a total of 24.74% in the third week of July as a part of the 'Sector Superstars' model.

SWARAJENG, or Swaraj Engines Limited, a company engaged in the manufacturing of engines for Swaraj tractors that are manufactured by Mahindra & Mahindra Ltd. (M&M), was among the underperformers with a negative return of 9.74%, as a part of the 'Sector Superstars' model.

M&MFIN, or Mahindra & Mahindra Financial Services Limited, a non-banking financial company (NBFC), which serves the financing needs of the population residing in rural and semi-urban areas of India, was down 8.53%, as a part of the 'Alpha Ally' model.

Reads On the Internet:

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Shark Tank India faces heat for the number of deals that weren't actually closed.

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Borrowing your friends’ Netflix password might not work now

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As we come to the end of this thrilling week, let's keep our hopes high and believe that we'll reach new heights in the next couple of weeks. With that said, enjoy your weekend, go for a movie if you are lucky enough to find seats, and don’t forget to subscribe to our newsletter if you haven’t already.