Investment Opportunities Aplenty As Correction Hits The Market

Sep 22, 2017 | 03:56 PM IST

Market this Week

This week started on a positive note but due to geopolitical cues and US Fed Status quo on interest rate kept the market in a range-bound mode. However, the positive news is that a great rebound was seen in the pharma sector stocks as some of the companies got permission from USFDA and some companies got the overweight rating from the rating agencies. Due to the ongoing geopolitical tensions, we have a cautious view on the market for next couple of days, but the positive news is that this correction has also provided a fresh buying opportunity.

Movers & Shakers

Dr Reddy gained almost 12% this week because as it received USFDA approval and a positive rating from rating agencies. The price was at a support level. Walchandnagar Industries rallied almost 35% this week post company announced its plan to raise Rs. 57 crore from the market. TVS electronics rallied 33% as the price was at a strong support level, however, the exchange has demanded clarification from TVS Electronics with reference to increase in volume. Profit booking has been seen in most of the sectors due to global cues apart from pharma sector.

Key Market Drivers

Apart from geopolitical issue and US Fed interest rate decision other important news for the market this week were 1) TRAI has slashed the termination price for all mobile to mobile calls to 6 paise per minute from 14 paise that is likely to hamper earnings of the telecom companies in coming days. 2) Moody's India said that foreign direct investment (FDI) would increase in coming days because reforms carried out by the government like the recent implementation of the goods and services tax and the bankruptcy code. 3) To double the income of farmers, the center has directed the states to make their own policy and strategy to achieve the target of doubling farmers' income by 2022.

Event Watch

The update on the Korean peninsula is very important to follow as this will decide the direction of the market in coming days. RBI monetary policy is going to come on 3rd of October and we are expecting a status quo on the interest rate as inflation has increased on Consumer Price Index (CPI) as well as Wholesale Price Index (WPI) level.

Stocks to Watch

Dr Reddy is on the upside while ACC is on the downside.

 

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