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Inflation fears pull down markets

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It was a mixed trading week for the Indian markets as mid-cap and small-cap stocks saw some buying along with some sectors experiencing some gains. However, broader benchmark indices and large-cap stocks did see some selling pressure, as Nifty50 and Sensex ended the week marginally lower.

2 factors weighed in on the market selloff – inflation fears have started kicking in as June forecasts for inflation suggest that inflation will be above RBI’s target range for the 2nd straight month with prices of food and fuels rising. Moreover, global rating agency, Fitch Ratings, cut India’s growth forecast from 12.8% to 10% amid slow recovery post the second wave of Covid-19.

Anyway, before moving further ahead with some market updates, here’s a quote for the week…

Quote of the week

“The stock market is a device for transferring money from the impatient to the patient.”

The stock market is a device for transferring money from the impatient to the patient. Click To Tweet

Markets Update

Nifty50

15,689.80

0.21% ▼

Sensex

52,386.19

0.19% ▼

Nifty 500

13,527.95

0.25% ▲

Bank Nifty

35,071.95

0.75% ▲

The Big Picture

The India Services PMI measures the performance of the services sector and is based on data compiled from monthly surveys sent to 350 companies in the service sector. In June, the Services PMI declined to 41.2 from 46.4 in the previous month, and far above market expectations of 48. This is the fastest pace of contraction since June 2020.
Foreign Exchange Reserves in India increased to an all-time high of $610.01 billion on July 02 from $609.00 billion in the previous week.

Ok, so?

The coming of blockchain in Indian banking

15 banks in India, including but not limited to SBI, ICICI, HDFC Bank, Kotak, Axis, etc have come together to form a company and have invested ₹5 crores each to implement the applications of blockchain in Indian banking systems.

This project is expected to use a blockchain-based platform that is developed by Infosys, called the Finacle Connect and this platform helps in the digitisation and automation of trade-related finance processes. Okay, so why should you care? Click below to find out! 👇

15 Indian banks have collaborated to form a company called IBBIC (Indian Banks’ Blockchain Infrastructure Co.)
It will use blockchain to process letters of credit (LCs) for domestic transactions.

Ok, so? 🤔👇🏻#bank #indianbanks #banking #finance #blockchain #india pic.twitter.com/famQyYb1ox
— smallcase (@smallcaseHQ) July 9, 2021

Inside smallcase

Windmill Capital has launched 3 new smallcases!

Our first smallcase manager, Windmill Capital, has introduced 3 new smallcases. The new smallcases are designed to track and help people invest in prominent Indian business groups/conglomerates.

The House of Tata smallcase helps investors invest in the Tata Group’s companies – an internationally reputed business conglomerate. Similarly, The House of Bajaj smallcase helps people invest in the listed entities of the Bajaj group – a company with its footprint in diversified sectors. Finally, the House of HDFC smallcase helps investors get exposure to companies part of HDFC group, a large conglomerate with businesses in the financial services sector.

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