Weekly Market Wrap (20 July 2026 – 24 July 2026)

Markets Under Pressure, Earnings Stay Strong, and Global Uncertainty Continues

The week of 20th July to 24th July 2026 presented a mixed picture for investors. While equity markets in India and across the world ended in negative territory, several leading companies delivered impressive quarterly earnings. At the same time, rising bond yields, inflation concerns, and geopolitical developments kept investors cautious.

Let's take a closer look.

Indian Market Highlights

Equity Market Performance

The Indian stock market witnessed profit booking during the week.

Nifty 50: -2.33%

BSE 500: -1.85%

Despite the decline, the correction appears to be driven more by global uncertainties and cautious investor sentiment than by weakness in corporate fundamentals.

Corporate Earnings Continue to Impress

Eternal Delivers Exceptional Growth

Eternal reported an outstanding first-quarter performance.

Net profit surged 268% year-on-year to ₹792 crore.

Revenue jumped 182% to ₹20,211 crore.

The results indicate strong business expansion and improving operational efficiency.

Infosys Shows Stable Growth

Infosys also delivered healthy quarterly numbers.

Net profit increased 12% year-on-year to ₹7,769 crore.

Revenue grew 14% to ₹42,211 crore.

The company revised its FY27 revenue guidance and announced Ashiss Kumar Dash as CEO-designate.

These numbers reinforce the resilience of India's IT sector despite global economic uncertainty.

Debt Market Update

India's 10-Year Government Security (August 2032) closed at 6.826%, rising by 4.6 basis points.

Meanwhile, ICICI Bank successfully raised US$1 billion through a five-year dollar bond. Strong investor demand allowed the bank to borrow at tighter-than-expected spreads, highlighting continued global confidence in leading Indian financial institutions.

Key Indian Macro Developments

Several macroeconomic developments influenced market sentiment:

The United States placed India in the lower 10% tariff tier under Section 301 measures, although the Indian government stated that exemptions would protect nearly US$87 billion worth of exports while trade negotiations continue.

India's private sector activity slowed to a four-year low in July, with the HSBC Flash Composite PMI falling to 54.3. Rising inflationary pressures also weighed on business confidence.

Global Market Overview

Global equity markets also ended the week lower.

Dow Jones: -0.38%

S&P 500: -0.61%

MSCI World Index: -0.39%

Investor sentiment remained cautious amid inflation concerns and geopolitical tensions.

Global Corporate News

Intel Beats Expectations

Intel reported a strong second quarter.

Adjusted EPS: 42 cents

Revenue: US$16.1 billion

The company delivered its fastest quarterly revenue growth since 2011, exceeding market expectations.

Anthropic Launches Claude Opus 5

Artificial Intelligence continued to dominate technology headlines.

Anthropic introduced Claude Opus 5, offering near top-tier AI performance at approximately half the price while improving capabilities in enterprise coding, scientific research, and knowledge work. The launch highlights increasing competition in the AI industry.

Global Bond Market

The U.S. 10-Year Treasury Yield rose to 4.687%, increasing by 13.7 basis points.

Higher yields prompted investors to withdraw a record US$7.1 billion from U.S. investment-grade bond funds as inflation concerns resurfaced.

Global Geopolitical Developments

Markets also reacted to several important geopolitical events.

The U.S. announced a phased tariff plan on imported generic drugs.

Discussions around a potential U.S.–Saudi civil nuclear agreement remained uncertain.

Reports of renewed U.S. military action involving Iran added to concerns about regional stability and global energy markets.

What Should Investors Do?

Periods of market correction are a normal part of long-term investing. Rather than reacting emotionally to short-term volatility, investors should focus on:

Continuing disciplined SIP investments.

Reviewing portfolio allocation periodically.

Staying diversified across equity, debt, and international assets.

Avoiding investment decisions based solely on short-term news.

Strong corporate earnings in India suggest that long-term economic fundamentals remain healthy even when markets experience temporary declines.

Final Thoughts

The week reminded investors that markets often move differently from company fundamentals. While indices corrected, several businesses continued to report excellent earnings. Rising bond yields, inflation, and geopolitical uncertainties may keep volatility elevated in the near term, but disciplined, long-term investors are generally better positioned to benefit from market cycles.

Disclaimer: This article is for educational and informational purposes only and should not be considered investment advice. Investors should consult a qualified financial advisor before making investment decisions.

Mutual Fund Risks Explained: Know Which Fund is Affected by Which Risk

Every mutual fund carries some level of risk. However, not all mutual funds are exposed to the same type of risk. Understanding these risks helps investors select the right scheme according to their investment objectives and risk appetite.

This article explains the major risks associated with mutual funds and identifies the fund categories most affected by each risk.

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Major Risks in Mutual Funds

Risk	Meaning	Mainly Affects
Market Risk	Risk of loss due to a fall in the overall stock market.	Equity Funds
Interest Rate Risk	Risk that bond prices will fluctuate because of changes in interest rates.	Gilt Funds, Debt Funds
Credit Risk	Risk that the issuer's financial strength deteriorates or defaults on its obligations.	Credit Risk Funds
Default Risk	Risk that the issuer fails to pay interest or principal on time.	Corporate Bond Funds
Liquidity Risk	Risk of not being able to sell securities quickly at a fair price.	Small Cap Funds, Debt Funds
Concentration Risk	Risk arising from excessive exposure to a single company, sector, or industry.	Sectoral and Thematic Funds
Currency Risk	Risk due to fluctuations in foreign exchange rates.	International Funds
Inflation Risk	Risk that investment returns fail to keep pace with inflation.	All Investments
Reinvestment Risk	Risk of reinvesting interest or maturity proceeds at lower interest rates.	Debt Funds
Duration Risk	Risk that long-duration bonds are highly sensitive to interest rate movements.	Long Duration Funds, Gilt Funds

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Which Mutual Fund is Most Affected by Which Risk?

Fund Category	Most Important Risk
Equity Fund	Market Risk
Large Cap Fund	Market Risk
Mid Cap Fund	Market Risk
Small Cap Fund	Market Risk and Liquidity Risk
Sectoral/Thematic Fund	Concentration Risk
Index Fund / ETF	Market Risk
ELSS Fund	Market Risk
Hybrid Fund	Market Risk and Interest Rate Risk
Corporate Bond Fund	Credit Risk and Default Risk
Credit Risk Fund	Credit Risk
Banking & PSU Debt Fund	Interest Rate Risk
Short Duration Fund	Interest Rate Risk
Long Duration Fund	Duration Risk and Interest Rate Risk
Dynamic Bond Fund	Interest Rate Risk
Gilt Fund	Interest Rate Risk
International Fund	Currency Risk
Liquid Fund	Very Low Credit Risk and Very Low Interest Rate Risk
Overnight Fund	Negligible Interest Rate Risk and Credit Risk

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Understanding Each Risk in Simple Words

1. Market Risk

This is the risk of losing money because the overall stock market falls.

Example: If the Sensex or Nifty declines sharply, most equity mutual funds will also fall.

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2. Interest Rate Risk

When interest rates rise, bond prices generally fall. Debt mutual funds that invest in bonds are affected by this risk.

Highest in: Gilt Funds and Long Duration Funds.

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3. Credit Risk

This is the risk that the company issuing the bond may experience financial difficulties, leading to a downgrade in its credit rating or even default.

Highest in: Credit Risk Funds.

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4. Default Risk

Default risk occurs when the issuer actually fails to pay interest or repay the principal amount on the due date.

Highest in: Corporate Bond Funds.

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5. Liquidity Risk

This is the risk that a security cannot be sold quickly without affecting its price.

Highest in: Small Cap Funds and certain Debt Funds.

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6. Concentration Risk

A fund that invests heavily in one sector or a few companies is exposed to concentration risk.

Highest in: Sectoral and Thematic Funds.

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7. Currency Risk

International mutual funds are affected by fluctuations in foreign exchange rates.

Highest in: International Funds.

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8. Inflation Risk

If the return on an investment is lower than the inflation rate, the investor loses purchasing power.

Applies to: All investments.

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9. Reinvestment Risk

Interest or maturity proceeds may have to be reinvested at lower interest rates, reducing future returns.

Highest in: Debt Funds.

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10. Duration Risk

Long-term bonds experience greater price fluctuations when interest rates change.

Highest in: Long Duration Funds and Gilt Funds.

Mutual Fund Risks Explained: Which Mutual Fund Scheme is Affected by Which Risk?

 Understanding the different types of risks associated with mutual funds is essential for every investor and is one of the most important topics in the NISM Series V-A and ARN Certification Examination. Different categories of mutual funds are exposed to different types of risks depending on the securities in which they invest.

The table below provides a quick reference to the primary risks associated with various mutual fund schemes.

Mutual Fund Scheme / Category	Primary Risk(s)	Example
Equity Funds	Market Risk	Stock market (Sensex/Nifty) declines sharply.
Sectoral/Thematic Funds	Concentration Risk, Market Risk	Banking or IT sector underperforms.
Small Cap Funds	Market Risk, Liquidity Risk	Small-cap stocks are highly volatile and difficult to sell during market stress.
Mid Cap Funds	Market Risk	Mid-cap companies experience higher volatility than large-cap companies.
Large Cap Funds	Market Risk (comparatively lower)	Blue-chip stocks decline during a market correction.
ELSS (Tax Saving) Funds	Market Risk	Equity investments fluctuate despite the tax benefit.
Index Funds / ETFs	Market Risk	The benchmark index falls in value.
International Funds	Currency Risk, Market Risk	Appreciation of the Indian Rupee reduces overseas returns.
Liquid Funds	Liquidity Risk (Very Low), Credit Risk (Low)	Invest primarily in money market instruments with short maturity.
Overnight Funds	Negligible Interest Rate Risk and Credit Risk	Invest only in one-day maturity securities.
Ultra Short Duration Funds	Low Interest Rate Risk	Invest in short-duration debt instruments.
Short Duration Funds	Interest Rate Risk	Bond prices fluctuate due to changes in interest rates.
Corporate Bond Funds	Credit Risk, Interest Rate Risk	Corporate bond issuer defaults or interest rates increase.
Credit Risk Funds	High Credit Risk	Invest significantly in lower-rated corporate bonds.
Banking & PSU Debt Funds	Interest Rate Risk (Low Credit Risk)	Invest mainly in debt issued by banks and public sector undertakings.
Dynamic Bond Funds	Interest Rate Risk	Fund manager changes portfolio duration according to interest rate outlook.
Gilt Funds	High Interest Rate Risk	Invest exclusively in Government Securities (G-Secs).
Money Market Funds	Low Credit Risk, Low Interest Rate Risk	Invest in short-term money market instruments.
Hybrid Funds	Market Risk, Interest Rate Risk	Combination of equity and debt investments.

What is PASA in insurance

The PASA, full form in Insurance, is pre-approved sum assured insurance plan.  This is a type of insurance policy where the insurer will pre-approve a specific sum assured amount for the policyholder on the basis of certain criteria. As they offer pre-approved coverage along with a simple application process, it is easy for policyholders to obtain.

Features of PASA insurance plans:

In the PASA insurance plan, the value assured is predetermined by the insurer based on the policyholder’s profile, which includes age, income, and health status. This eliminates the need for comprehensive medical underwriting and documentation. Obtaining coverage is faster and easier because of fewer documentation needs and a streamlined application procedure. Since the sum assured is pre-approved, the policy issuance process offers quick access to coverage.

Benefits of PASA insurance plans:

The pre-approval process makes it simpler and faster to receive coverage. Knowing the sum assured in advance allows for better financial planning. As the PASA insurance plans offer simplified underwriting and minimum documentation, insurance is more accessible to a larger population. Guaranteed acceptance and prompt issuance give policyholders confidence and peace of mind. The PASA insurance plans offer an efficient and convenient way to offer secure financial protection with minimum hassle.

GST Withdrawal from Insurance Premiums in India: What It Means for You

The Indian government recently announced the withdrawal of the Goods and Services Tax (GST) on individual life and health insurance premiums, effective September 22, 2025. This move is aimed at making insurance more affordable and accessible to the general public. But what does this mean for policyholders and insurers? Let’s break it down.

How Policyholders Benefit

1. Lower Premiums

Earlier, policyholders had to pay an 18% GST on top of their insurance premiums. With GST removed, the cost of insurance policies drops significantly. For example, a ₹10,000 premium will now cost exactly ₹10,000 instead of ₹11,800, giving an immediate saving of ₹1,800 per year.

2. Refunds on Multi-Year Policies

If you’ve paid premiums in advance for multiple years, you may be eligible for a GST refund for the period after September 22, 2025. While the exact refund process is still being clarified by insurers, this could translate into substantial savings for long-term policyholders.

3. Immediate Savings on New Policies

Any new policies purchased on or after September 22, 2025, will be GST-free. This gives policyholders instant financial relief and makes health and life insurance more accessible.

Challenges for Insurers

1. Loss of Input Tax Credit (ITC)

Insurers previously claimed ITC on GST paid for operational expenses. With GST removed, this credit is no longer available, potentially increasing insurers’ operational costs.

2. Possible Premium Adjustments

To compensate for lost ITC, some insurers may adjust premium rates or modify policy structures. While GST is gone, the base premium may still be revised, which could affect affordability for some policyholders.

3. Commission-Related Issues

Insurance agents’ commissions are still a point of concern. The Life Insurance Council has urged the government to remove GST on agents’ commissions. Without this, insurers face loss of ITC, which may indirectly affect profitability and policy offerings.

What Policyholders Should Do

1. Review Policy Documents – Understand how the GST exemption impacts your premium and coverage.

2. Consult Your Insurer – For multi-year policies, check if you are eligible for a refund.

3. Stay Updated – Watch for changes in premium structures as insurers adjust to this new tax regime.

Final Thoughts

The GST exemption on insurance premiums is a welcome step toward making insurance more affordable in India. While policyholders benefit immediately, insurers may face challenges that could affect policy pricing and offerings in the future. Staying informed and proactive will help you maximize the benefits of this new policy.

Learning the Art of Disciplined Savings

Money comes in and goes out, but disciplined saving ensures it always works for you. Here’s a practical roadmap to build strong savings habits—backed by numbers.

1. Change Your Mindset

Savings is not optional. Treat it like a bill you must pay yourself every month, just like rent or electricity. This mindset shift is the first step toward financial independence.

2. Pay Yourself First

The golden rule: save before spending. Automate savings by transferring a fixed percentage (say 20% of your salary) into a savings account or SIP.

Example: If you earn ₹25,000/month, saving 20% means ₹5,000 goes into your savings before you touch the rest.

3. Budget Smartly

Follow the 50-30-20 rule:

50% → Needs (₹12,500 for rent, bills, food)

30% → Wants (₹7,500 for entertainment, shopping)

20% → Savings/Investments (₹5,000)

Tracking your expenses weekly can prevent money leaks and help you stick to this plan.

4. Build an Emergency Fund

Life is unpredictable. An emergency fund of 3–6 months of expenses ensures you can handle crises without debt.

Example: If your monthly expenses are ₹20,000, aim for a fund of ₹60,000–₹1,20,000 in a liquid account.

5. Make Money Grow

Savings alone isn’t enough—invest to benefit from compounding.

Example: Saving ₹5,000/month for 10 years at 8% annual return:

Total invested: ₹5,000 × 120 months = ₹6,00,000

Approximate growth: ₹9,00,000

Even small amounts grow significantly over time.

6. Stay Consistent

Consistency beats timing the market. Avoid impulse spending and unnecessary loans.

Example: Saving just ₹3,000/month at 7% annual growth for 20 years:

Total invested: ₹7,20,000

Approximate value after 20 years: ₹16,80,000

Final Thoughts

Disciplined savings is about habit, not luck. Start small, stay consistent, and let time turn your efforts into financial security and independence. Your future self will thank you.

A penny stock to have a look

Vikas Ecotech Limited (VEL) has acquired Shamli Steels through a share swap, issuing 38 million new shares at Rs 4.20 each to Shamli Steels' shareholders. This valued Shamli Steels at Rs 160 crore and made it a wholly-owned VEL subsidiary. Separately, VEL's subsidiary Vikas Organics secured a Rs 165 million export order for vinyl plasticizers, while VEL is upgrading VOPL's facilities to boost production and expand its global market presence.

The company has a market cap of over Rs 700 crore. The stock’s 52-week high is Rs 5.63 and its 52-week low is Rs 2.82. The stock is up by 54 per cent from its 52-week low of Rs 2.82 per share. Investors should keep an eye on this penny stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

Education and Healthcare as Businesses in India: A Critique and Analysis

 

Introduction

Since India's independence, education and healthcare have gradually transformed from public services to profitable enterprises. This shift has significantly impacted common Indians, often exacerbating inequalities and limiting access to quality services.

Education

Commercialization and Access

High Costs: The rise of private educational institutions has led to exorbitant fees, making quality education a privilege for the affluent. Families from lower-income groups struggle to afford these fees, often resorting to loans or other financial sacrifices.

Public vs. Private Quality Gap: 

Public schools and colleges suffer from chronic underfunding, resulting in inadequate infrastructure and staffing. This contrasts sharply with well-funded private institutions, leading to a dual education system where only the wealthy can access superior education.

Profit Motive

Rote Learning and Coaching Centers: The focus on high-stakes entrance exams has fueled the growth of coaching centers that emphasize rote learning over critical thinking. This commercial approach undermines the holistic development of students.

Lack of Regulation: Many private institutions operate with minimal oversight, leading to issues such as capitation fees and arbitrary fee hikes. This regulatory gap allows for exploitation and prioritization of profit over educational outcomes.

Healthcare

Privatization and Inequality

High Treatment Costs: The privatization of healthcare has resulted in advanced medical facilities being available primarily through expensive private hospitals. Common Indians often find these services unaffordable, leading to financial distress or untreated health issues.

Public Healthcare Strain: Public hospitals are overcrowded and under-resourced, offering substandard care. The stark disparity between public and private healthcare creates a two-tier system where the poor receive inferior treatment.

Medical Education and Workforce-

Commercialized Medical Education: Private medical colleges charge high fees, making medical education inaccessible to many. This commercialization impacts the quality and distribution of healthcare professionals, as those from affluent backgrounds dominate the sector.

Insurance and Coverage Gaps: Health insurance, while growing, is often insufficient and complex. Many common Indians remain uninsured or underinsured, facing significant out-of-pocket expenses for medical care.

Impact on Common Indians

Economic Burden

Debt and Financial Strain: The high costs of education and healthcare place immense financial pressure on families. Many incur debts or deplete savings to afford these essential services, impacting their overall financial stability.

Intergenerational Inequality: The commercialization of these sectors perpetuates social and economic inequalities. Wealthier families can afford better education and healthcare, while poorer families remain trapped in cycles of poverty.

Quality of Life

Mental Health Issues: The financial and academic pressures associated with accessing quality education and healthcare contribute to mental health problems. Students and parents alike face stress, anxiety, and other psychological issues.

Limited Opportunities: Inaccessible education and healthcare limit personal and professional growth opportunities. Talented individuals from lower-income backgrounds often cannot pursue higher education or receive adequate medical care, stifling their potential.

Conclusion-

The commercialization of education and healthcare in India has led to significant challenges for common Indians. Addressing these issues requires comprehensive reforms:

Strengthening Public Institutions: Increased funding and improved infrastructure for public schools, colleges, and hospitals can bridge the quality gap between public and private sectors.

Regulatory Reforms: Robust regulations to control fees, prevent exploitation, and ensure quality in private institutions are essential.

Equitable Policies: Policies promoting affordable private sector solutions, scholarships, and financial aid can enhance access to quality education and healthcare for all.

By implementing these measures, India can mitigate the adverse effects of commercialization and ensure that education and healthcare serve as foundations for inclusive and sustainable development.