Weekly Market Insights: 23rd October 2021

All major indices snapped the rally this week. Small and midcap indices saw significant correction over the week, falling over 5%. Large cap indices faced lesser correction as they were protected by larger banking stocks which remained stable over the week.

High input costs due to inflationary pressure has reduced Q3 earnings estimates for various sectors. Other concerns revolving around tightening monetary policy globally, inflationary pressure, resurgence of Covid in some countries also added to the negative sentiment.

Key points that will determine market movement going forward are Q2 earnings data, festive season demand, commodity prices and global bond yield movement.

Selling was seen in metals due to concern over commodity prices and supply side constraints. FMCG, which is extremely sensitive to input costs also saw selling due to anticipation of low margins and growth.

In an unexpected move, Nifty Bank held strong over the week and supported the index from falling further.

Mutual Fund Industry Highlights

SEBI bans RIAs from dealing in digital gold and other unregulated instruments

SEBI on Thursday barred registered investment advisors (RIAs) from advising or facilitating investments in unregulated products like digital gold and cryptocurrencies.

NFO's currently open

• NJ Balanced Advantage Fund
• ICICI Prudential Smallcap Index Fund
• Aditya Birla Sun Life Nasdaq 100 FOF
• ITI Pharma and Healthcare Fund
• LIC MF Balanced Advantage Fund
• HDFC NIFTY Next 50 index Fund