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📊 Weekly Finance Update (7–12 July 2025)
By CMAKnowledge.in | Updated on 13 July 2025
📘 Introduction
This week in Indian finance was packed with significant economic, policy, and market events. The stock markets witnessed volatility as global cues remained mixed and investors eyed early Q1 FY26 results. The RBI maintained the repo rate and emphasized price stability, while inflation moderated and GST revenues remained strong. Regulatory updates from SEBI and CBDT focused on transparency and investor protection.
📈 Stock Market Performance
Index Summary (7–12 July 2025)
- Nifty 50: Opened at 25,565 → Closed at 25,250 (–1.22%)
- Sensex: Fell from 83,125 → 82,200 (–1.11%)
- Nifty Midcap 100: Lost 1.7% due to risk-off sentiment
- India VIX: Rose mid-week to 13.8, signaling caution
Sectoral Trends
| Sector | Weekly Performance | Remarks |
|---|---|---|
| FMCG | +2.1% | ITC, HUL rallied on improved rural outlook |
| Pharma | +1.8% | Supported by USFDA clearances and exports |
| IT | –2.6% | Infosys, TCS dropped post-weak Q1 guidance |
| Auto | –1.7% | Mixed monthly sales; 2W segment underperformed |
| Banking | –1.9% | Profit booking ahead of earnings |
FPI Flows
- Equity: Net outflow of ₹1,120 crore
- Debt: Inflow of ₹650 crore (preference for stable returns)
- FPIs cautious due to US Fed and China’s slowdown
🏦 RBI & Monetary Policy
Monetary Policy Highlights – 10 July 2025
- Repo Rate: Unchanged at 5.50%
- Stance: Neutral; inflation watch remains key
- RBI Forecast: FY26 GDP at 6.9%, CPI inflation at 4.2%
Regulatory Measures
- NBFC Guidelines: Tier 1 Capital to be raised to 18% by FY27
- Digital KYC: Norms relaxed for faster digital onboarding
- Credit Discipline: Banks asked to disclose effective lending rates clearly
📊 Economic Indicators
| Metric | Latest | Previous | Trend |
|---|---|---|---|
| GDP (Q4 FY25) | 6.5% | 6.3% | ↑ |
| CPI Inflation (June) | 2.52% | 2.82% | ↓ |
| WPI Inflation | 1.6% | 1.9% | ↓ |
| Index of Industrial Production (IIP) | 1.2% | 2.6% | ↓ |
| Unemployment Rate | 4.1% | 4.3% | ↓ |
| GST Collections | ₹1.56 lakh crore | ₹1.61 lakh crore | ↓ |
| Forex Reserves | $641.1 billion | $637.9 billion | ↑ |
💼 Corporate & Investment News
- HDFC Bank to acquire a fintech startup focused on digital payments (₹2,200 crore)
- Reliance Industries signed a JV with US-based firm for green hydrogen manufacturing
- Infosys expects flat revenue in Q1 FY26; shares fell 3.5%
- Zomato saw 12% rise in average order value amid rising food inflation
📰 SEBI & Regulatory Highlights
- SEBI Circular: AMCs must disclose all expenses clearly in product brochures
- CBDT: Notified updated TDS chart for FY25-26 with clarification on Section 194N & 194R
- CSR Amendment 2025: Companies can now set off excess spending in 5 years instead of 3
📉 Commodities & Forex
- Gold: ₹66,820/10g → ₹67,500 (up due to global tensions, USD weakness)
- Crude Oil: Brent around $86/barrel – fluctuating on OPEC production updates
- INR/USD: INR depreciated to 83.52 due to FPI outflows
📅 Action Plan for 14–19 July 2025
🔍 Events to Watch
- Q1 FY26 Earnings: Infosys, HDFC Bank, UltraTech Cement
- US CPI Inflation & FOMC Minutes – key global cues
- Progress on Indo-US Free Trade Agreement
📌 Suggested Strategies
- Focus on defensive sectors (FMCG, Pharma) amid volatility
- Use dips to accumulate quality IT stocks ahead of full earnings
- Short-term profit booking in Realty/Auto recommended
- Debt funds favorable for conservative investors as MCLR rises
📅 Upcoming Releases
| Date | Event |
|---|---|
| 15 July | India WPI Inflation (June) |
| 16 July | Infosys, HDFC Bank Q1 results |
| 17 July | FOMC Minutes |
| 19 July | Weekly Forex Reserves Data |
🔚 Conclusion
The week was a balancing act between earnings anticipation, macro stability, and regulatory clarity. While cautious global cues weigh on equities, India’s strong fiscal foundation and accommodative monetary stance provide a buffer. As we move into earnings-heavy weeks, investor focus will shift from macro to micro. Staying informed and disciplined will be key to navigating the rest of July 2025.
📚 Sources
- NSE India
- RBI Monetary Policy
- SEBI Circulars
- MoSPI IIP & GDP Data
- GST Revenue Data
- Trading Economics – India
