Category: Share market

The Dow, up 7 per cent for the year, was flat on Thursday after rallying in recent weeks as cooler-than-expected inflation data has investors more optimistic that a soft landing, or no recession, could be in the cards for the economy, CNN reported.

Globally market participants will be closely watching US Federal Reserve chief Jerome Powell’s comments about the disinflation process in the US and the likely trend in interest rate, says V.K, Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In the last two days, FPIs have sold stocks worth Rs 2,081 crore indicating buying exhaustion, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

For investors, the market is buys on dips with a strict stop loss of 19500, and if the Nifty closes below the indicated level, we can expect more profit booking, says Deven Mehata, Equity Research Analyst, Choice Broking.

FPI flows into India continue unabated in July, too. India is the largest recipient of FPI flows YTD among emerging markets, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The substantial cut in the guidance is majorly attributed to lower-than-expected volume and discretionary spends, delays in decision-making and push-outs in anticipated mega deals, the report said.

Barring the US, India is the most expensive market in the world now, Vijayakumar added. At high valuations, some negative triggers can lead to sharp correction. But in the near-term the party may continue.

Nifty opened flat on Thursday, but soon gained momentum to close with handsome gains of 146 points at 19,979 levels, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

Indian benchmark indices continued the winning run for the fifth consecutive session on July 19, amid buying across sectors, said Vikram Kasat, Head Advisory, Prabhudas Lilladher.

After witnessing high volatility at the highs on Tuesday, Nifty witnessed choppy movement for mid part and sharp upsurge in the later part of Wednesday and closed the day higher by 83 points, says Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The market traded in positive with the Sensex gaining 0.80 per cent to close at 66589.03, while Nifty was up by 0.75 per cent intraday and closed at 19,711.45 levels, its highest ever,  whereas Bank Nifty was up by 1.41 per cent to settle at 45449.75.

The valuations in China at a PE of 9 is hugely attractive now compared to valuations in India with a PE of around 20 and, therefore, the ‘Sell China, Buy India’ policy of FPIs cannot continue for long, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

A sharp rally in IT stocks powered the Sensex to close above the 66,000-mark for the first time ever on Friday. IT heavyweights led the rally as the BSE Sensex closed at 66,060, up 502 points.

Selling by domestic institutions is emerging as a countervailing force putting brakes on the rally -- this explains the resistance which Nifty is facing at 19,500, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

This is clear indication that the disinflation process is on in the US and might persuade the Fed to pause once again in the July 26 rate decision. This is an important positive global cue, he said.

Weak global cues and profit booking in domestic equities dragged the key indices down on Friday. Nifty opened lower and remained in negative territory throughout the session to close near the day’s low with a loss of 166 points (-0.8 per cent) at 19,332 levels.

The strengthening of the US dollar and the slight reduction in global recession concerns have resulted in a decline in gold prices, said an analyst with Geojit Financial Services. 

India continues to trade at above mean valuations and at premium levels relative to global equities. Mid-caps are now trading at average premium levels helped by pick-up in FPI equity inflow into India especially in financial services, industrials, and auto sectors.

On the other hand, countries such as South Korea, Taiwan and Indonesia have received far less inflows compared to India, Jahnavi Prabhakar, Economist at Bank of Baroda, said in a report.

The recent surge in FPI inflows have been triggered by the recent ‘Sell China, Buy India’ strategy of the FPIs which, in turn, is being influenced hugely by the anti-China attitude/policy evolving in the US and the developed world.

Nifty's journey from 18,000 to 19,000 took 425 trading days (from October'21-June'23) vs. only 30 days when it covered the journey from 17,000 to 18,000, Motilal Oswal Financial Services said in a report.

The domestic indices ended Wednesday’s session after hitting fresh all-time highs during the day. The NSE Nifty 50 soared 54.70 points or 0.82 per cent to 18,972.10, while the BSE Sensex surged 499.39 points or 0.79 per cent to 63,915.42.

An important feature of the rally that took the Sensex to record high was its weak structure and lack of enthusiastic investor participation, says V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Industry experts said the upward trend will be there for some more months and the markets may turn nervous during the next round of state elections in November/December 2023.

"Equity benchmark indices extended their winning streak for the fourth consecutive day on Tuesday, bolstered by a steady influx of foreign funds," said Ameya Ranadive, Equity Research Analyst, Choice Broking.