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The market expert believes if smart money continues to divest, it could be a counter-indicator for the market. In the global macro context, persistent inflation, central bankers attempting to caution the markets, and uncertain rate hikes cause concern. Bagga suggests investors take some money off the table and recommends diversifying risk with mutual funds for small cap investments.

COMEX Gold is facing its biggest weekly decline since January due to major central banks’ rate hikes and markets pushing back against rate cuts. Swaps show that not even a single 25-point rate cut is expected for 2023. Hawks like ECB and BOE increasing rates have led to easing of the dollar index and rising yields, which in turn cause an opportunity cost to holding gold, as a non-yielding asset. Despite recent comments by Atlanta President Raphael Bostic and Chicago Fed President Austan Goolsbee on inflation, Fed Chair Jerome Powell and two Federal Reserve policymakers emphasised the importance of fighting inflation and the need to raise interest rates.

Faze Three shares have provided a whopping return of almost 5,700% in the past decade, reaching almost INR 6 lakh from an initial investment of INR 10,000. The stock has witnessed a surge of 1,103% and offered returns of 302% in the last three and five years, respectively. The company is a majority-promoter-owned home interior product manufacturer and exporter with a market capitalization of INR 933 crore. Domestic funds have made Faze Three one of their top picks for the month. Technical analysts also suggest holding the stock at the current market price.

After consecutive gains, equity markets closed in the negative zone due to cautiousness in global markets. Despite this, Sensex reached an all-time high level. Thirty-seven small-cap stocks delivered double-digit returns during the week, and two mid-cap stocks delivered double-digit returns. Almost all indices ended in the red, with metal and commodity stocks bleeding the most. Analysts predict that the market will consolidate in the near term, and investors should use corrections to buy. Technically, there is weakness in the Nifty index, but new highs are expected to come in time.

Trendlyne data shows that 6 Nifty midcap stocks, including Federal Bank, Bandhan Bank, Jubilant FoodWorks, and Mphasis have high analyst ratings and can rally up to 34%.

Weak economic indicators from China and concerns over global growth are hampering demand for industrial metals, with most trading at lower levels than in April. Copper and lead prices declined due to demand concerns, as did aluminium and zinc, which shed more than 50% so far. The property sector in China is beginning to stabilise, but recovery remains subdued due to high debt levels and inflation, while retail sales numbers have posted a contraction. Supply outlook for 2023 is encouraging and a deceleration of global growth and muted demand from China will continue to dominate the metals market.

The company, which was set up in 1957 as a government-backed synthetic rubber maker, now supplies photoresists to global chipmakers. They are used to transfer circuit patterns on to semiconductor wafers.

Blue chip stocks are established, financially sound companies with strong governance, skilled management teams, and a proven track record. They offer stability, reliability and are included in major market indices. These stocks are known for their leadership position in their respective sectors and have strong bargaining power with the customer. They have a robust financial strength, can weather market fluctuations, and have a consistent track record of paying substantial and regular dividends. While being safe and low-risk investments, blue-chip companies command high valuations, generally above the broad-market, thus making them an ideal choice for long-term investors.

Wall Street banks are warning that US stock values are approaching overbought levels, making equities more vulnerable to declines. The S&P 500 now trades at 19 times its expected 12-months earnings, above its historic average of 15.6 times, according to Refinitiv Datastream; similar valuation levels have preceded periods of rocky performance. Catalysts that could cloud the outlook include unexpected weakness in economic growth, a more hawkish Federal Reserve, and a rebound in inflation, investors said. Despite this, some investors still believe the stock market rally could continue, but with a pullback coming from overbought levels.

Block and bulk deals involving both buying and selling actions were prominent in at least 7 companies last week, such as Shriram Finance, Timken India, and HDFC Asset Management Company, among others. Piramal Enterprises and TPG India sold over 3.12 crore and 99.18 lakh shares, respectively, in Shriram Finance, which were worth Rs 4,824 crore and Rs 1,390 crore, respectively, while Abrdn Investment Management exited from HDFC AMC selling 2.18 crore shares for Rs 4,079 crore. At least 15 prominent deals were reported, with Shriram Finance, HDFC AMC, and Timken India topping the chart.