Nifty posts 2nd consecutive weekly loss as weak global cues, macro data weigh

Indian equity benchmark ended the week lower, as global cues, macro data, and increasing cases of the new delta variant weighed. 

Nifty started off the week on a strong note, amid favorable cues, as last Friday’s US jobs report drove global stocks to a record high. After a volatile session on Tuesday, the Nifty ended with minor gains amid muted global cues and firm crude oil prices. 

The index recovered on Wednesday with decent gains, amid a rally in index heavyweights. Thursday was a very eventful day, with IT major TCS scheduled to report its quarterly earnings. Global stocks plunged as investors were concerned about the rise in cases of the new delta variant. Nifty ended Thurusday's session 1% lower. 

Nifty continued its decline on the final day of the week and ended the session with minor losses. Negative cues from Asian indices put pressure on the Nifty. The benchmark the week 0.19% down. The week was marked with interesting developments such as GST collections, Cabinet reshuffle and GDP downgrade.

Top gainers and losers 

• Nifty Realty & Nifty Metal were the biggest gainers in the week, jumping up to 6.25%
• Bajaj Finserv, Tata Steel, Hindalco, IndusInd Bank and Ultratech Cement were the top Nifty gainers in the week
• Tata Motors, Bajaj Auto, TCS, Tech Mahindra & RIL were the biggest losers

Here is a quick recap of the market moving developments:

• Macro data disappoints: The Gross GST collection numbers fell below the 1 lakh crore mark for the first time in the last 8 months. GST collections fell to Rs 92,849 crore in May, as most of the States/UTs were under either complete or partial lockdown due to the second wave of the pandemic during the month. Services PMI contracted sharply to 41.2 in June, from 46.4 in the month of May, indicating the extent of pain in the services industry.  The further contraction in services PMI in June is the fastest rate of reduction since July 2020.
• IPO euphoria continues: Shares of India Pesticides Ltd listed at a premium of 24% on Monday. The issue had been subscribed about 69 times earlier this month. GR Infraprojects and Clean Science and Technology IPOs also saw very strong demand in the week. GR Infraprojects was subscribed by about 103 times, while Clean Science and Technology was subscribed by about 93 times as at the end of day 3.
• TCS earnings: TCS has reported a 2.5% on-quarter drop in net profit to ₹9,008 crore in Apr-Jun 21 period, missing street expectations. Analysts had earlier estimated a net profit of ₹9,400 crore. The net profit margin fell to 19.8% from 21.2% in the previous quarter. On an yearly basis, the profit grew by 28.5%.  Read detailed analysis

Check out our other analysis on important market developments!

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