Weekly Market Report: Global Volatility, Indian Markets Show Resilience

Global Markets Overview
Global equity markets remained under pressure during the week as investors stayed cautious amid concerns over technology stock valuations and the global growth outlook.
US Markets:
 US indices traded lower for most of the week, led by weakness in the Nasdaq and large-cap technology stocks. Investors continued rotating funds away from high-valuation tech stocks towards value sectors and bonds, reflecting a risk-off approach.
Europe & Asia:

• European and Asian markets witnessed mixed to negative trends, tracking weak global sentiment.
• Australia’s equity market saw a sharp sell-off, resulting in significant erosion in index values.

Global Sentiment:
 Rising uncertainty around interest-rate trajectories, growth slowdown fears, and valuation concerns kept global markets volatile.

Indian Markets Overview
Despite weak global cues, Indian equity markets showed resilience and recovered from early-week volatility.

• Sensex: Ended the week higher by approximately 266 points
• Nifty 50: Closed above 25,650

Key Observations:

• Buying interest was concentrated in banking, financial services, and select large-cap stocks
• Mid-cap and small-cap segments remained volatile with intermittent profit booking
• Domestic Institutional Investors (DIIs) provided consistent support to the market

Currency Update

• The Indian Rupee strengthened marginally against the US Dollar and traded near ₹90.18/USD
• Support came from capital inflows and market expectations ahead of the RBI monetary policy announcement

Key Global Factors Impacting Markets

• Continued selling pressure in global technology stocks due to valuation concerns
• Shift of global funds towards bonds and emerging markets
• Prevailing risk-off sentiment amid uncertainty around global growth and interest rates

Key Indian Developments

• Markets remained cautiously positioned ahead of the RBI monetary policy decision
• Strength in financials and banking stocks helped cushion downside risks
• Stable macro indicators and domestic liquidity supported Indian equities

Commodities Update
Gold:

•  Prices softened and traded near ₹1.50 lakh per 10 grams (MCX)
•  Weakness was driven by profit booking and currency movement

Silver:

•  Prices corrected sharply, declining nearly 5–10% from recent highs
•  High volatility continues in precious metals

Crude Oil:

•  Brent crude traded in the range of USD 68–69 per barrel
•  Prices remained volatile due to demand concerns and global risk sentiment

Mutual Funds & Wealth Management Perspective
Global equity and bond funds continued to witness steady inflows, highlighting investor preference for diversification
Wealth managers are advising:

• Balanced asset allocation
• Focus on quality large-cap equities
• Increased allocation towards debt and fixed-income instruments
• Reduced exposure to highly volatile assets
• SIP investments in mutual funds continue to be recommended for long-term wealth creation, especially during volatile phases

Overall Market Outcome & Outlook

• Market sentiment remains cautious but stable
• Global volatility persists, but Indian markets continue to show relative strength

Investors are advised to:

• Stay diversified
• Avoid short-term speculation
• Focus on long-term financial goals and disciplined investing