Stock Market Report: July - Week 2, 2023

Indian stock markets were sideways throughout the week with high volatility but made a new high on Friday. Know the important factors and events for the week here.

Stock Market Report: July - Week 2, 2023

Weekly Wrap up

This week's market movement can be compared to the recent weather- 'Extremely unpredictable'. The stock markets were like a seesaw after a stellar rise in the previous week, with prices oscillating between gains and losses. However, the lift-off in the Indices in the last 30 minutes on Friday propelled all the major indices to a new all-time high.

The Nifty50 ended the week with a positive return of 1.32%,  reaching an intraday high of 19,594.55, while the Nifty500 index was up 1.30%.

A few factors contributed to the market's volatility this week. One was the release of retail inflation data and CPI (Consumer Price Index) data, which were higher than in May. Retail Inflation stood at 4.81%, and CPI at 4.49% in June. This raised some concerns about investors as profit booking was seen at 19500 levels. The IT stocks also led the rally after reassuring results of TCS, which had strong deal wins in the June quarter, justifying strong demand.

Despite the volatility, the market had some bright spots this week. Multiple IPOs, including Idea Forge, Cyient LMD, and Senco Gold, saw firm listings. Technology stocks outperformed the broader market, with the Nifty IT index rising over 4.6% in the 2nd week of July.

The sixth-largest IT company, LTIMindtree, replaced HDFC in the Nifty 50 index on July 13th, leading to solid upcoming inflows of around $150 million from passive Index Funds.

Leaders & Laggards

Sectors like IT, Metal and Pharma were among the top performers, whereas Energy and PSE were among the laggards. Although the Nifty50 ended the week in green, multiple models ended the week with over 1% returns. The Sector Superstars was one of the outperformers with a 4.20% return for the 2nd week of July, whereas Back Up came in second with 1.76%.

On the other hand, High Five and Quick Short were two of the underperformers for the same timeframe, with -0.30% and -7.36%, respectively.

JINDAWSAW, or Jindal Saw Limited, which is a manufacturer and supplier of tube and tube fittings of basic iron and steel, and mining of iron ores, was the top performer with 16.53% returns as a part of the 'Sector Superstars' model

WELCORP, or Welspun Corp Limited, which is a diameter line pipe company, engaged in the business of production and coating of submerged arc welded pipes, hot rolled steel plates and coils, and more, was the second outperformer with 12.79% returns, as a part of the ‘Buy High Sell Higher’ model.

STAR, or Strides Pharma Science, was among the underperformers for the 2nd week of July with a negative return of 8.89%, as a part of the ‘Buy High Sell Higher’ model. The company is a global pharmaceutical company engaged in developing and manufacturing active pharmaceutical ingredients, formulations, and biotech.

CERA, or Cera Sanitaryware Limited, also known for its tiles and other bathroom products, is engaged in manufacturing, marketing and distributing sanitaryware, faucet ware and more. The stock ended with a -8.65% return as a part of the 'Alpha Ally' model.

Reads On the Internet:

This Energy Drink brand is growing faster than some of the household names

PepsiCo’s energy drink, Sting, becomes the fastest growing brand surpassing staple brands like Pepsi-Cola and Mountain Dew.

The government’s GST rate hike might also affect thousands of employees.

The recent change in the GST on online gaming to 28% might affect companies and thousands of employees working in the sector.

Inda’s retail Inflation inches higher to 4.81% for the month of June 2023.

As per data, the Retail Inflation increased from 4.25% in May to 4.81% in June 2023. The CPI (Consumer Food Index) also surged from 2.91% in May to 4.49% in June.

HDFC dethrones Reliance to become the highest weightage stock in the Nifty

After the merger of HDFC Bank & HDFC, the conglomerate now has a total weightage of 14.43% in the Nifty, vs the 10.8% weight of Reliance Industries.

Chandrayaan 3 successfully takes off from Shriharikota

ISRO’s latest space mission to the moon- the Chandrayaan 3, pulled off a successful take-off from the Satish Dhawan Space Centre in Sriharikota.

All in all, markets have been kind to long-term investors, despite some short hiccups last week. However, the last 30 minutes of Friday seem the mirror image of the lift-off of Chandrayaan 3 leading the Indian indices towards the Moon.

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