July 06, 2025 | Read Online
Weightages of FMCG and IT Down, Banking back up post decline
• While the Nifty lost a bit, small and mid-caps were largely positive.
• Technically, markets look poised for an up move as a good and healthy consolidation is happening, but risks from global geopolitics continue.
• The latest RBI stability report highlighted a resilient economy, though as we have been highlighting since last year, high stress is visible in fintech loans, especially for individuals who are < 25 years in age. Next few quarters years would see several belly ups in the NBFC space catering to this segment of users/customers.
• However, banks unlike last time, are in a much better space and hence risks to the economy at large would be much lesser.
• For investors in line with their targeted asset allocation, we recommend staying put to capitalise on any upside that could happen over this quarter (if there is no major geopolitical escalation).
• Conversely, if investors are low on equities, use balanced funds/structured products to participate with low downside. (Needless to say, be very discerning and careful about the issuer because a structured product has the following risks: a) Credit Risk and b) Understanding Risk, c) Liquidity Risk, but if played well and upto 10% of your equity assets, it can be a good and essential part of your portfolio).
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