Sensex & Nifty declined on Friday, retreating from the record-high posted in the prior session amid external macroeconomic headwinds after strong wage growth data from the US magnified concerns of high interest rates from the Federal Reserve. Tech giants with high exposure to North American and European markets led the losses, with Tech Mahindra and HCL Technologies both dropping 2%, while Infosys shares declined 1.1%
In the coming week, investors will watch out for US, China and India inflation data which will steer central banks to decide on rate hike path. Domestic investors will watchout for Q1 earnings from TCS, Wipro, Avenue Supermart, Tata Steel and HCL tech.
Equity Market Summary:
- Wallstreet indices closed on negative note after giving up opening gains although the US non-farm payroll data came below estimation. However, wager growth was 0.4% MoM which can act like a catalyst for Fed to go with a 25bps rate hike.
- European stocks closed mostly higher on Friday with Germany’s DAX 40 adding 0.4%.
- The US economy added 209,000 jobs in June 2023, following a downwardly revised 306,000 in May, and below market forecasts of 225,000.
- The ISM Services PMI unexpectedly jumped to 53.9 levels in June 2023, pointing to the strongest growth in the services sector in 4 months, and well above 50.3 levels in May and forecasts of 51 levels.
- The Caixin China General Services PMI fell to 53.9 levels in June 2023 from 57.1 levels in the previous month.
- US crude oil inventories dropped by 1.508 million barrels in the week ending 30th June 2023, the least in 3 weeks but slightly more than forecasts of a 0.983 million fall.
