Broader markets were largely flat in the week with some movement seen in mid and smallcaps.

Weekly Movement of Key Indices

The most significant market mover this week was the release of US inflation data. As anticipated, the number was another all-time high at 9.1%. Markets did not have a major reaction to the same as the news was already signaled by Fed and factored in. Both S&P 500 and Nasdaq 100 ended the week flat.

Economic experts say that this is the peak of inflation for the US and there will a gradual drop in the coming months. The 75bps July rate hike still stands anticipated.

On the other hand, Indian inflation for June eased and stood at 7.01%.

Sectoral Movement

Segments that have underperformed the last bull cycle like banks, auto and pharma seem poised to benefit in the next couple of years since their undervalued levels provide a good margin of safety. On the other hand, though overvalued segments like tech are correcting significantly, such levels are a good opportunity to slowly accumulate with a long-term vision.

Usually, rupee depreciation helps the IT sector as most services are outsourced to global counterparts. Despite this, IT stocks are correcting as earnings in the segment are expected to slow-down in the coming quarters.

NFOs currently open

After a long hiatus, NFOs are back in the market. Some interesting ones this week was the flagship fund of Whiteoak Capital. You can read more about the fund here. The entire list of NFOs is as below:

  • Edelweiss Focused Equity Fund
  • Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund
  • WhiteOak Capital Flexi Cap Fund