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Markets end lower amid weak macro cues

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The Indian stock markets ended last week in red as benchmark indices witnessed sellers outpacing the buyers for the first 4 trading days of the week. Despite the FM Nirmala Sitharaman introducing additional relief measures to help the economy to recover, markets did not seem all too convinced.

Weak manufacturing sector data and dwindling Asian market sentiment weighed in on market sentiments at home.

Before moving to further updates about the markets, here’s a quote for the week…

Quote of the week

“If a picture is worth a thousand words, in business, so is a number.”

If a picture is worth a thousand words, in business, so is a number. Click To Tweet

Markets Update

Nifty50

15,722.20

0.87% ▼

Sensex

52,484.67

0.83% ▼

Nifty500

13,494.45

0.33% ▼

Nifty Bank

34,809.90

1.57% ▼

The Big Picture

India’s infrastructure output, which measures the performance of industries like steel, coal, natural gas, electricity, etc. jumped by 16.8% year-on-year in May 2021.
India’s fiscal deficit, which is the difference between government revenues and expenses, stood at ₹1.23 lakh crores in May 2021.
India’s trade deficit (imports minus exports) stood at $9.40 billion in June 2021.
As per RBI data, the value of commercial bank deposits and commercial bank loans grew by 10.3% and 5.8% respectively in the fortnight ended June 18th, 2021.
India’s Manufacturing PMI, which measures the manufacturing sector’s health, fell to 48.1 in June 2021. A reading of less than 50 indicates a contraction and this is the first contraction since July of last year, after a harsh resurgence of Covid-19 impacted demand.

Investing Insights

India’s booming FMCG industry

The Fast Moving Consumer Goods (FMCG) industry is a very unique industry, mostly because at the very heart of this industry is an average consumer – just like you and me. The world’s largest economies are also those that have the most powerful consumers in terms of spending power. Hence, it only makes sense for India to focus on its consumers if it plans to expand its economy into a large powerhouse.

India’s FMCG industry is thus on the radar of the government and investors. A slew of growth drivers are defining the growth path of this industry – rising rural incomes, growth of e-commerce and advancement of logistics, the advent of superior technology and newer growth strategies by companies – all are contributing to what might be a very bright future for FMCG in India. Read more, here.

Inside smallcase

SIPs with smallcase

SIP stands for Systematic Investment Plan. As the name suggests, it helps the investor allocate funds in a smart and disciplined manner. Timing the markets is a difficult task, but SIP eliminates that worry. With SIP, you can invest fixed amounts at regular intervals. You, then, stand to have an advantage over market volatility and do not need to monitor the markets constantly.

Buy more when the price is low, less when the price is high. If on the SIP date, the stock price is high, you will be able to buy a lesser number of shares. And vice versa. This ensures that you invest more at lower prices and less at higher prices, and hence your overall cost of acquisition gets averaged out. Try out investing with SIPs in smallcases for passive, long-term wealth creation. Read more about SIPs, here.

That’s a wrap for this week. Happy Investing! 🙂

Abhishek Jadon

VP, Investment Products at Windmill Capital.

Stocks gain despite some economic headwinds

Inflation fears pull down markets

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