Macro data, global cues, FII inflows & more: Key triggers for stock markets this week
top drag on the Sensex index, followed by those of ICICI Bank, Infosys and Hindustan Unilever. Mid and smallcaps also fell but they still outperformed the benchmark. The BSE Midcap index ended 0.13 per cent lower while the Smallcap index ended with a loss of 0.31 per cent.
The overall market capitalisation of BSE-listed firms dropped to nearly ₹304.6 lakh crore from ₹305.4 lakh crore in the previous session and ₹306.2 lakh crore on Wednesday. Investors lost about ₹1.6 lakh crore in two days. Sensex lost 0.6 per cent for the week while the Nifty declined 0.45 per cent.
Last week, the Reserve Bank of India (RBI) conducted its third monetary policy committee (MPC) meeting for the current fiscal (FY24) and left the repo rate unchanged at 6.5 per cent, among other key decisions. However, the central bank raised concerns on the inflation front due to uneven monsoon in some parts of the country which has led to an increase of vegetable prices. ‘’Benchmark indices fell for the third week in a row following RBI's decision to impose a 10 per cent incremental cash reserve ratio to absorb surplus liquidity from the banking system after the withdrawal of the ₹2,000 currency notes,'' said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services.
‘’With the increase in the cash reserve ratio, it is expected that it will not impact the majority of the banks in the longer tenure. The banking sector will continue to remain resilient on the back of strong asset quality, healthy credit growth and solid capitalisation,'' added Nanda. Several macroeconomic indicators will influence market dynamics in the upcoming holiday-shortened week --with the market closure on August 15.
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