Sensex & Nifty To Reach Higher If RBI Lowers Policy Rate

Jul 14, 2017 | 05:07 PM IST

Market This Week:

Market is hitting new all time highs. Nobody is in correction mood. Delivery based volume has increased last week suggesting more optimism in sentiments of investors. Nifty heading towards 10k levels while Sensex is rallying to hit 33k in near terms. Considering IIP numbers and CPI data, possibilities of a rate cut in the upcoming policy has increased. IT giants have started quarter earning season again. TCS and Infosys both companies were on disappointing side of Dalafor the street as far as growth and earnings are concerned.

Movers And Shakers:

Shares of Central Depository Services (India) Ltd (CDSL) surged 122.25% from the issue price of Rs.149 per share in a week after its market debut on 30 June. CDSL’s stellar performance beats a bumper rally in Avenue Supermarts Ltd which listed on 21st March 2017. Shares of maverick investor Radhakishan Damani-promoted Avenue Supermarts, operator of supermarket chain D-Mart, have surged around 200% since the day of listing.

On the other side, Religare Enterprises Ltd slipped nearly 28.36%. Company looked under pressure as India Ratings has flagged off cash crunch at the company. Addition to this, the company has redeemed 1,361 NCDs of face value Rs.10,00,000 each on June 30, as fourth and final redemption.

Key Market Drivers:

Recent data pointing to a slowing in industrial production growth and to a fall in retail price inflation has given room to the Reserve Bank of India to cut its policy rate at the review meeting on August 2, believe many economists and bankers.

The Index of Industrial Production (IIP) expanded 1.7 per cent in May, lower than the revised 2.8 per cent rate in April. Consumer Price Index (CPI) inflation was down to a record low of 1.5 per cent in June from 2.2 per cent the previous month.

Event Watch:

Quarter earnings have started but not the way Dalal Street expected. Post Trump storm, expectations from IT companies are already lower. IIP data added cushion to the India economy. CPI data was way lower than expectation. WPI inflation YoY June reported 0.9% compared to 2.17 in the preceding month. Next monetary policy will be the event to watch as rate cut sentiments are hitting the market now and this could give better rally in coming time.

Stocks To Watch:

Bodal Chemical is on up side while Religare Enterprises Ltd is on downside.

 

ABOUT AUTHOR

Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to pave a smooth road for our clients in the shaky world of stock market. While...
FULL BIO

LEAVE A COMMENT

RECOMMENDED READING

Infosys, TCS Disappoint; Hopes Pinned On Midcaps

Market This Week The market is following one-way traffic at this point. Any small correction will be highly welcomed by the investors to jump in. All the giants are set to
Read More>>

Free Research Report -Tata Coffee Ltd.

Tata Coffee Limited is a holding company. The Company, through its subsidiaries, engages in the production, trading and distribution of coffee, tea and allied products. The Company's segments include Plantation and Value Added Products. Its
Read More>>

Global Optimism & Monsoon Keep The Market In Green

Share Market News – 19 July 2017 The market looked positive cutting yesterday's loss where Nifty just managed to hit 9900 levels and closed at 9899.6 gaining 72.45 points while Sensex jumped by 244.36 points to 31955.35. All
Read More>>

Position Trading: Much More Than Just Buy-Hold-Sell

Wait and watch. One of the most common phrases​ used in the English language. But if used in the right context, it can be a very powerful expression. In the context of trading, position trading can be best explained by using these three words –
Read More>>

Free Research Report Rico Auto Industries Limited

Incorporated in March 1983, Rico Auto Industries Ltd (RAIL) manufactures and sells high-pressure aluminum die cast components and spheroidal graphite (SG) iron castings for the automotive sector. RAIL currently operates from 9 locations at
Read More>>