Category: Share market

The rally in Indian equities that has swelled the market’s total valuation by $775 billion in a little more than five months has been accompanied by a notable shift in investor preference to smaller stocks, a media report said.

Domestic equities closed positively for the third consecutive day on Tuesday led by optimistic domestic cues, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

Nifty opened higher and held on to steady gains through Monday barring a small downmove in the morning. At close, Nifty was up 0.48 per cent or 93.5 points at 19,528.8, Deepak Jasani, Head of Retail Research, HDFC Securities, said 

Domestic markets made significant gains buoyed by favourable global cues, a higher-than-expected domestic manufacturing PMI, and positive GDP growth data, said Vinod Nair, Head of Research at Geojit Financial Services.

The benchmark indices ended in the red on Thursday on the back of concerns regarding 9 per cent deficit in monsoon as several states have witnessed scarce rainfall this month across many districts, said S. Ranganathan, Head of Research at LKP Securities.

An important feature of the market performance this year is India’s underperformance relative to the US, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Nifty Smallcap and Midcap indices have managed to register fresh all-time highs on closing basis, Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities, said on Tuesday.

Swayed by global markets, Indian equities opened lower and witnessed a choppy session on Friday, to close the day with a cut of 121 points for Nifty while Sensex fell by 365 points.

India's growth rate is expected to be the highest in the near future, which will make it one of the biggest development opportunities, Finance Secretary T.V. Somanathan was quoted as saying at an event, according to reports.

Nifty overcame early volatility to end higher for the third session on Wednesday. At close, Nifty was up 0.25 per cent or 47.6 points at 19,444, while the Sensex rose 213 points to settle at 65,433.30.

At close, Nifty was up 0.01 per cent or 2.9 points at 19396.5. Volumes on the NSE continued to be on the lower side. Broad market indices gained 0.9-0.95 per cent outperforming the Nifty even as the advance decline ratio remained firm at 1.79:1.

A sharp spike in US bond yields is impacting capital flows to emerging markets like India, says V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Investor sentiment remains subdued due to the high volatility of the global currency market, leading to a high depreciation of EM currencies, which affects the performance of equities, says Vinod Nair, Head of Research at Geojit Financial services.

Benchmark indices ended in the red on Friday on the back of profit taking seen in IT stocks as well as PSU stocks, said S. Ranganathan, Head of Research at LKP Securities.

Further weakness in the market will make valuations reasonable. Long-term investors can utilise market corrections to buy high quality stocks in growth sectors like capital goods, banking, automobiles and construction, he said.

The market would trade cautiously ahead of India’s inflation data to be released on Monday, which is expected to rise in July on account of high vegetable prices. On account of the Independence Day holiday on Tuesday, the market might remain lackluster, he added.

The indication from the Reserve Bank of India (RBI) is that a rate cut can be expected only in Q1 of FY 25 and this will be a headwind for the market, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

ZEEL’s 1Q results exceeded expectations with Revenue/EBITDA coming 6 per cent/29 per cent above abobe estimate, JM Financial Institutional Securities said in a report.

The MPC also decided to make the scheduled banks maintain an incremental cash reserve ratio (I-CRR) of 10 per cent on the increase in their net demand and time liabilities (NDTL) between May 19 and July 28.

According to Pranav Haldea, Managing Director, Prime Database Group, this was on account of profit booking by LIC, mutual funds as also retail and HNI investors with markets reaching all-time highs. Net inflows from DIIs stood at just Rs 3,368 crore during the quarter.

The macro challenge in the decade ahead will be to achieve sustained high, stable and inclusive growth, which has thus far been elusive, S&P Global said in a report titled India's Moment.

Rupee weakness continued further below 82.75 down by another 18 paisa as dollar index rising above 102.50 kept added pressure on rupee fall as risky assets showed sell off, says Jateen Trivedi, VP Research Analyst at LKP Securities.

Morgan Stanley has upgraded India to overweight. India rises from number 6 to number 1 in our process, with relative valuations less extreme than in October, while MS macro, strategist and bottom-up analyst scores reflect MS' Blue Paper thesis on India's Decade.

For the first time in India’s history, a majority of the promoters and executive directors of Nifty50 companies are neither foreign educated nor educated at the elite IITs & IIMs, says a research by Marcellus Investment Managers.

It appears that the momentum of buying has slowed down and FPIs have turned sellers during the last two trading days, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.