Key Points

The IT sector remained under strain due to muted performance and cautious outlooks amid global demand uncertainty, while financials are also expected to report subdued results due to expected NIM contraction and asset quality concerns.

“In contrast, FMCG stocks outperformed, supported by encouraging growth guidance that points to a possible revival in urban consumption trends. Improved earnings momentum supported by macroeconomic tailwinds can shift investor preferences towards consumption stocks,” said Vinod Nair, Head of Research, Geojit Investments Limited.

On Friday, Indian benchmark indices ended on a weak footing, with the Nifty slipping below the crucial 25,000 mark amid broad-based selling pressure. The Sensex declined 501.51 points, or 0.61 per cent, to settle at 81,757.73, while the Nifty shed 143.05 points, or 0.57 per cent, to close at 24,968.40.

Excluding Media and Metal, all sectoral indices closed in the red, with pronounced weakness in Pharma, Private Banks, PSU Banks, FMCG, Capital Goods, Consumer Durables, and Telecom, which lost between 0.5 per cent and 1 per cent.

The broader market also witnessed profit-taking, with the Nifty Midcap and Small cap indices retreating 0.7 per cent and 0.8 per cent, respectively.

According to Bajaj Broking Research, the upcoming week brings a mix of high-frequency indicators from both the US and India that will offer insights into manufacturing activity, housing health, and labour market strength.

On the Indian front, the key data point will be the S&P Global Manufacturing PMI (Preliminary) for July. The manufacturing sector has shown steady expansion in recent months, and investors will look for signs of sustained momentum.

On the global front, markets are closely monitoring the outcome of the proposed US-India mini trade agreement. A favourable resolution could strengthen the outlook for export-oriented sectors and enhance India’s relative attractiveness among emerging markets, said experts.

—IANS

- IANS