On Friday, Sensex & Nifty initially dropped but rebounded as Reliance Industries surged after announcing Jio shares listing date (21/08/2023). Domestic bourses recorded 4th consecutive weakly losses dragged by stocks with large exposure to international clients in the tech sector. Amid global challenges, rising domestic food inflation, a weakening INR, and higher energy costs are fuelling speculation about the RBI's future repo rate decisions. FIIs/FPIs purchased domestic equities worth of Rs. 83 billion in the month of August (till 20th August 2023).
In the coming week, investors will watch out for Fed chair Powel speech at Jackson hole, RBI policy meeting minutes and PMI data points.
Equity Market Summary:
- Wallstreet indices closed on a mixed note, Dow Jones closed slightly higher, snapping losses in the last 4 sessions, while the S&P 500 was flat, and the Nasdaq fell 0.2% amid worries over higher-for-longer interest rates and fresh credit risks in China.
- European equity markets closed negative tracking global equities trend.
- Oil prices declined more than 2% during the week, snapping a 7-week streak of gains, amid China’s weakening economy and fears of further US interest rate hikes outweighed signs of tightening global supplies.
- Industrial production in the US rose 1% from a month earlier in July 2023, the most in six months and following and above market expectations of a 0.3% increase.
- Industrial production in the Euro Area rose by 0.5% (M-o-M) in June 2023, better than market forecast of 0.1% fall.
- Industrial production in Japan increased by 2.4% (M-o-M) in June 2023, better than previous month level of 2.2%.
- Japan's trade balance unexpectedly posted a deficit of JPY 78.73 billion in July 2023, missing market estimates of a surplus of JPY 24.6 billion.
