Analyst view: Vinod Nair, Head of Research, Geojit Financial Services Market retreated from high due to subdued result from banking stock and consumer discretionary, while pharma continued to taste the bitterness in earnings owing to US FDA inspection and pricing pressure. This consolidation may continue in the near-term but investors may start accumulating due to surplus liquidity and likely change in RBI's stance with a 25bps rate cut in the next week policy meet.
The benchmark Nifty50 pared losses in last leg of trade to end the first day of August series above 10,000-mark, up 1% for the week. Sensex, on the other hand, also ended marginally lower for the day but up 1% for the week. The street was dragged down by after DrReddy's extended fall for the second straight day post weaker Q1 quarterly earnings. Negative cues from Asian markets after US tech shares pulled Wall Street slightly lower also contributed to the losses.
Focus now shifts to Reserve Bank of India’s two-day monetary policy meeting, which is set to begin next week on Tuesday, while the outcome is expected on Wednesday.