Sensex & Nifty closed lower on Friday to halt a four-week winning streak as mixed corporate results, FIIs outflow and concerns of hawkish monetary policy in US dragged indices during the week. Going ahead, investors will watch out for domestic macro-economic data points and RBI monetary policy outcome. On results front, pharma, selected auto and banking stocks reported robust earnings which resulted in strong rally in share prices.
In the coming week, global investors will watch out for US NFP data and global PMI levels
Equity Market Summary:
- Wall Street indices closed positive on Friday amid better than estimated GDP growth data estimates and corporate earnings boosted market sentiment.
- PCE price index annual change in the United States decreased to 2.97% in June from 3.82% in May 2023.
- The Federal Reserve raised the target range for the federal funds rate by 25bps to 5.25%-5.5% in July 2023, in line with market expectations, and bringing borrowing costs to the highest level since January 2001.
- European Central Bank raised interest rates by 25 basis points on Thursday, a ninth consecutive rate hike, saying inflation is still expected to remain too high for too long despite the recent slowdown.
- Bank of Japan kept its key short-term interest rate unchanged at -0.1% and that of 10-year bond yields at around 0% in its July policy-meeting. However, board added the 0.5% ceiling on yield movements was a reference point rather than a rigid limit.
