Markets were largely flat during the week with mid and smallcaps displaying slight volatility.

Weekly Movement of Key Indices

The Fed signaled that in light of the ever-growing inflation, another rate hike is imminent next month and this one might be of 50 bps.

Markets can be volatile in the next few weeks as market prices in this news.

The news triggered a sell-off in US stocks with S&P 500 down 2.6% and Nasdaq down 3.3% for the week. The 10Y bond yield continued soaring and touched 3.04% in the week.

As a response, RBI also held onto its stance to prioritise taming inflation in the short-term

FIIs turned net sellers during the week again putting added pressure on the downside.

Sectoral Movement

‌While most sectors ended the week flat or in red, it was infrastructure and auto that outperformed in the week. Auto stocks saw fresh breakout and strong fundamentals could further boost this rally.

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