The Prime Weekly: 29 June 2026

Authored By Prime Research | Published at: Jun 29, 2026 10:00 AM IST

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Indian Markets Resilient Amid Asian Tech Selloff and El Niño Fears

The U.S. stock indexes finished last week mixed, as renewed weakness in large-cap technology and artificial intelligence (AI)-related shares weighed heavily on the Nasdaq Composite and S&P 500 Index.

A sharp fall in the Korea Composite Stock Price Index, which is mostly made up of tech/memory giants SK Hynix and Samsung Electronics, due to some de-leveraging of speculative positions, impacted the technology stocks.

Markets rebounded last week on easing geopolitical tensions, a sharp correction in crude oil prices to pre-Iran conflict levels, sustained domestic institutional buying, and positive global risk sentiment.

The Nifty reclaimed the 24,000 mark and held above it throughout the week.

The Indian rupee gave up its intraweek gains to end marginally weaker at 94.40 against the US dollar, compared with 94.33 in the previous week.

The IMD had projected aggregate seasonal rainfall (June–September) at 90% of the Long Period Average, placing it firmly in the “below normal” category. El Niño threatens to push food inflation higher while compressing rural incomes.

Investors would do well to keep these risks in mind and maintain an underweight allocation to stocks with significant exposure to rural income.

For now, we favour the BFSI space, with a particular preference for banks. Recent policy measures by the government and the RBI are expected to attract substantial capital into the country, compress the cost of capital, and create a conducive environment for BFSI earnings growth.

Nifty is facing resistance at the downward-sloping trendline, and a decisive move above 24,262 could trigger further upside towards 24500 and higher.

Indian markets are slated to open flat to mildly lower today on weaker Asian cues.

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