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Nifty posts weekly loss as volatile crude, macro data, global factors weigh

Nifty posts weekly loss as volatile crude, macro data, global factors weigh

Last updated: 02 Jul, 2021 | 02:51 pm

Nifty posts weekly loss as volatile crude, macro data, global factors weigh

Indian equity benchmark Nifty 50 ended the week lower, as concerns around rising crude oil prices, inflation, and the rise in cases of the new delta variant weighed.

After moving to a fresh record high intraday, the Nifty reversed gains to settle lower on Monday. Crude Oil prices rose above the crucial $75 per barrel mark, adding to the concerns.

Despite the announcement of Stimulus 4.0 by the government, the index continued its slide on Tuesday. While fresh Covid cases have reduced in India, the new Delta variant continues to be a cause of concern. Some developed countries like the UK and Australia have already imposed fresh restrictions to control its spread.

Nifty ended with modest losses on Wednesday too, as tension in the India-Chinese border impacted investor sentiment. On Thursday, the index ended lower as macro data such as lower PMI for June, and widening Current Account Deficit impacted sentiment. 

After four consecutive days of losses, the Nifty reversed losses on Friday, driven by gains in blue chips like Reliance Industries and ICICI Bank. Nifty ended the week with a loss of 0.87%.

Top gainers and losers 

  • Nifty Pharma (3.27%) biggest gainer for the week. Nifty Metal drops 1.8%.  
  • Divi's, DRL, Cipla, Tata Motors and HUL top Nifty gainers this week
  • Shree Cement, Bajaj Finserv, Ultratech Cement, Britannia and IOC top losers in the week

Here is a quick recap of the market moving developments:

  • IPO euphoria continues: Shares of KIMS Hospitals listed at a premium of 21% on Monday, after its IPO got a subscription of nearly 4 times earlier this month. Dodla Dairy shares listed at Rs 528, a premium of 23% as compared to its issue price. The issue had been subscribed by about 46 times.  
  • Government announces mega stimulus: On Monday, FM Nirmala Sitharaman announced a stimulus package worth Rs 6.29 lakh crore in a bid to provide relief to the struggling industries due to the second wave of the Covid-19 pandemic. Read our analysis
  • Manufacturing PMI disappoints: The Manufacturing Purchasing Managers' Index fell to its lowest in 11 months. Manufacturing PMI came in at 48.1 in June compared with 50.8 in May. A reading above 50 indicates economic expansion, while a reading below 50 indicates contraction. Falling new orders, business closures and the Covid-19 crisis triggered a reduction in output among Indian manufacturers during the month. 

Check out our other analysis on important market developments!

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