- Last week, Nifty 50 declined around 0.5% week-on-week, while broader markets were more resilient: Nifty Midcap 100 gained around 0.4% and Nifty Smallcap 100 rose around 0.5%.
- Brent crude has eased to around $88/bbl, down ~8% over the past nine days, providing some relief, although geopolitical developments around Iran and the Strait of Hormuz remain key monitorable.
- Supporting domestic sentiment are the recent decline in crude oil prices and renewed FII buying of Rs 3,276 crore last week (until Thursday).
- Markets are likely to remain range-bound in the week ahead, with a marginal recovery possible after three consecutive weeks of weakness.
- Sector performance remained mixed, with metals, capital-market stocks and pharmaceuticals among the better performers, while FMCG and autos remained under pressure.
Indian equity markets are poised to remain range-bound in the upcoming week, with a potential for marginal recovery following three weeks of declines. The Nifty 50 index fell approximately 0.5% week-on-week, while broader markets showed resilience, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining around 0.4% and 0.5%, respectively.125
The easing of Brent crude prices to about $88 per barrel, down nearly 8% over the past nine days, has provided some relief to the markets. This decline is coupled with renewed foreign institutional investor (FII) buying, which totaled ₹3,276 crore last week, bolstering domestic sentiment.3
Despite these positive indicators, the market remains cautious due to mixed global cues. Key macroeconomic data, including India's GDP growth, which is expected to be resilient at around 7-7.3%, will be closely monitored. The upcoming Q1 FY27 GDP data, set to be announced on August 31, is anticipated to be a significant market trigger.
Sector performance has been varied, with metals, capital-market stocks, and pharmaceuticals performing well, while FMCG and automotive sectors faced pressure. The geopolitical situation, particularly concerning Iran and the Strait of Hormuz, remains a critical factor for market stability.6
“Renewed FII buying of Rs 3,276 crore last week and a ~8% drop in Brent crude over nine days support sentiment, though geopolitical risks around Iran and the Strait of Hormuz remain key monitorables. Sector-wise, metals, capital-market stocks, and pharmaceuticals outperformed, while FMCG and autos stayed under pressure.”
Deccan Herald
