Markets remained range-bound through the week amid elevated crude and persistent global uncertainty

Mumbai, 15 August: Markets remained range-bound through the week amid elevated crude and persistent global uncertainty. While softer-than-expected U.S. labour market data initially supported expectations of a patient Fed, the subsequent rebound in crude shifted focus back to inflation risks and evolving geopolitical developments. Domestically, better-than-expected corporate earnings, stability in the rupee, moderation in the domestic 10-year bond yield and a gradual improvement in FII participation provided support to the domestic macro environment despite external headwinds.

On the domestic front, the Nifty 50’s strong Q1FY27 earnings performance comfortably exceeded market expectations. Earnings breadth remained healthy, with 33 constituents outperforming estimates, underscoring the strength of corporate earnings despite a challenging external backdrop and continuing to create opportunities for a bottom-up stock selection approach. During the week, the large-cap sentiments largely remained capped by Middle East tensions. However, the mid-cap index demonstrated strength and outperformed the benchmark, aided by better earnings visibility.

Sectorally, consumer durables and realty were among the notable gainers, supported by improving demand trends and domestic growth optimism, while PSU banks remained relatively buoyant on the back of healthy asset quality, attractive valuations and a favourable credit growth outlook. On the other hand, metals, automobiles and FMCG witnessed profit booking amid concerns over higher input costs. Looking ahead, investors will closely track crude, geopolitical developments, U.S. retail sales, FOMC minutes and Chinese economic data for further cues on global growth and the Fed’s policy outlook. – weekly market outlook from Vinod Nair, Head of Research, Geojit Investments Limited.

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)

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