Nifty posts weekly loss as Q1 earnings, Covid and global cues weigh

Nifty posts weekly loss as Q1 earnings, Covid and global cues weigh

Last updated: 30 Jul, 2021 | 02:08 pm

Nifty posts weekly loss as Q1 earnings, Covid and global cues weigh

Nifty posted losses for the week as lacklustre Q1 earnings and weak global cues dampened sentiments.

The Nifty started off the week with modest losses on Monday, tracking weak Asian markets. China’s latest crackdowns on its technology and education sectors came as a major headwind for major markets. The index continued its decline on Tuesday, as below par results from Nifty 50 companies and weak global cues impacted sentiments. Global investors were cautious ahead of the two-day Fed Reserve meeting over Tuesday and Wednesday. 

The index ended lower for the third consecutive day on Wednesday, after major agencies including IMF and S&P revised their FY22 GDP growth estimates lower. After three consecutive days of losses, Nifty made a smart 0.45% rebound on Thursday, as investors cheered Fed’s move of keeping the interest rates unchanged.

On the final day of the week, markets remained volatile and settled almost unchanged amid mixed cues. For the week, the Nifty ended 0.6% lower, logging its second consecutive weekly drop.

Top gainers and losers

  • Nifty Bank Falls 3% in the last two weeks. The biggest 2-week fall In Nearly 4 months
  • Metal Gains the Most amongst major indices, Up 8%, Led By Hindalco & Tata Steel
  • Hindalco, Tata Steel, Sun Pharma, Bajaj Finserv, Tech Mahindra top Nifty gainers
  • DRL, Axis Bank, Maruti, Asian Paints, Kotak Bank top Nifty losers

Here is a quick recap of the market moving developments:

  • Nifty 50 companies continue to post below-par results: Most quarterly earnings so far have failed to beat expectations. Of those companies that have reported results, 18 of the 27 Nifty firms have missed analyst estimates, according to data from Bloomberg. You can read our analysis on L&T, Tata Motors and Maruti Suzuki.
  • IPO euphoria continues: Tatva Chintan Pharma shares nearly doubled during listing, after the IPO was subscribed by 180 times. During the week Glenmark Life Sciences IPO was subscribed by 44 times, while Rolex Rings IPO was subscribed by 130 times in the week. 
  • Fed keeps rate unchanged: Federal Reserve officials indicated they have begun discussing when to end their pandemic-driven easy monetary policy, due to fears of a rise in inflation. The US central bank kept the target range for its benchmark policy rate unchanged at zero to 0.25%. 
  • IMF cuts India’s GDP growth forecast: The International Monetary Fund (IMF) cut its FY22 growth forecast to 9.5% for FY22, mainly due to the impact of the second COVID-19 wave. This forecast for 2021-22 is lower than the 12.5% growth in GDP that IMF had projected in April before the second wave took a grip.

Check out other interesting articles

Nestle India results: Nestle India has reported a 10.68% on-year rise in net profit to Rs 539 crore in Apr-Jun 21 period against Rs 487 crore in the same quarter last year. Sequentially, however, the profit declined by 10.5% compared with Rs 602.25 crore at the end of the March 21 quarter. The company missed the street's estimates as brokerages had projected a 14-19% jump in profit. Read more

Maruti Suzuki Q1 Results: Maruti Suzuki has reported a 332% increase in revenue on-year, mainly aided by a lower base last year. On-quarter, the company reported a 26% fall in revenues. Like every automobile company, Maruti too is struggling due to semiconductor shortage and its effects will be much more profound in Q2 FY22.  Net profit too has reduced by 62% over last quarter. Read more

Chinese stocks plunge the most since the 2008 crisis: China’s latest crackdowns on its technology and education sectors have led to a huge crash in its stocks. The Nasdaq Golden Dragon China Index -- which tracks 98 of China's biggest companies listed in the U.S. -- has plunged by more than 20% in the last one week itself. Read more