Welspun Corp., Jyoti CNC Automation, and Welspun Living were among over ten Nifty 500 stocks that registered double-digit gains this week, despite the broader market facing pressure from rising energy prices, global bond market turmoil, and geopolitical uncertainties.
The Nifty 50 index extended its losing streak to seven consecutive sessions through Wednesday, marking its longest run of daily declines in 11 months. This decline was primarily driven by rising oil prices, which reignited inflation concerns, as India imports around 85% of its crude oil requirements. Despite better-than-expected June-quarter earnings, domestic investors appeared to shift focus from large-cap stocks to mid-cap and small-cap funds, as indicated by July mutual fund data.
Welspun Living saw a 15.3% increase following a record order win. Other stocks, including Aegis Logistics, Netweb Technologies, Ipca Laboratories, Prime Focus, Leela Palaces Hotels, Urban Company, and CarTrade Tech, also posted gains exceeding 10%. These performances defied the weak market sentiment.
“The market is likely to remain volatile in the near term as geopolitical uncertainty, elevated crude oil prices, and global bond yields continue to influence investor sentiment.”
Ajit Mishra, SVP – Research at Religare Broking
Ajit Mishra, SVP – Research at Religare Broking, noted that the market is likely to remain volatile due to geopolitical uncertainty, elevated crude oil prices, and global bond yields. He advised investors to focus on companies with strong earnings visibility and healthy balance sheets, while cautioning against sectors vulnerable to higher crude prices and global demand uncertainty.
Ponmudi R., CEO of Enrich Money, emphasized the critical interplay between crude oil, U.S. Treasury yields, and the dollar. He highlighted that global macroeconomic and geopolitical developments are likely to play a significant role in setting the near-term market direction.
“With the bulk of the June-quarter earnings season now behind the market, global macroeconomic and geopolitical developments are likely to assume a greater role in setting the near-term direction.”
Ponmudi R., CEO of Enrich Money
Background
The current market volatility is driven by external factors such as rising energy prices and geopolitical tensions, which have overshadowed positive domestic economic fundamentals. This has led to a shift in investor focus towards mid-cap and small-cap stocks.
The current market volatility underscores the importance of a selective investment approach, focusing on fundamentally strong companies. Investors should remain cautious and monitor global monetary policy, crude oil prices, and geopolitical developments closely.
