Election Date Disclosure Brings Flying Colours In The Market

weekly share market news and updates

Our Analysis

This week the benchmark Indices have witnessed a decent upmove after the Election Commission announced Lok Sabha elections dates on Monday. The market also witnessed a rally in mid-cap stocks after a long time. Banking and Financials services have been a key driver of the current rally, which lifted benchmark indices Sensex and Nifty to the fresh six-month high. Key reasons behind this spike are hope of stable government at Centre and consistent FII inflow.

The upmove over the last few session in the benchmark indices is strong, there are certain possibilities that the indices may move further the higher levels in the near term. Domestically, on the macro front, all focus will be on the key data like CPI and India's current account deficit. On the global front, the development in the US-China trade, progress on Brexit will be closely watched. Since the broader indices have outperformed the frontline indices we recommend to stick with the quality and fundamental sound companies instead of chasing down the momentum blindly.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, Indian equity benchmarks closed strong after the Election Commission announced Lok Sabha elections date. The Sensex grew by 382 points at 37054.10, while Nifty was up 132.60 points at 11168.

2) Except for IT index, all other sectoral indices ended in green led by auto, energy, infra, metal, PSU bank, pharma, and FMCG.

3) On Tuesday, Indian equity benchmarks ended higher for the second consecutive day. The Sensex was up 481.56 points at 37535.66, while Nifty was up 133.20 points at 11301.20

4) Among the sectors, infra, energy, bank, FMCG, metal, and pharma witnessed buying interest, while IT and PSU bank index closed marginally lower.

5) On Wednesday, Indian equity benchmark ended higher for the third consecutive trading session, Nifty finished around 11,340 level. Sensex was up 216.51 points at 37752.17, while Nifty was up 40.50 points at 11341.70.

6) Among the sectors, except energy and PSU bank, all other indices are ended in red led by metal, pharma, and infra.

7) On Thursday, benchmark indices ended flat in a choppy session. The Sensex was up 2.72 points at 37754.89, while Nifty was up 1.60 points at 11343.30. Among the sectors, IT and auto stocks remained under pressure, while buying was seen in in the metal and pharma stocks.

7) On Friday, Indian equity benchmarks indices ended higher. The Sensex was up 269.43 points at 38024.32, while Nifty was up 83.60 points at 11,426.90.

Broader Index & Global Market:

- Globally, The rally in the US market slipped on Thursday after a three-day streak of gain, as uncertainty over when a trade deal between the United States and China would be reached left investors on edge. Asian along with European markets made the modest gain on Brexit reprieve.

- In the broader market, The Mid-cap and Small-cap has outperformed the benchmark indices, Also, banking and financial services have been a key driver of the current rally, which lifted benchmark indices Sensex and Nifty to a fresh six-month high. Key reasons behind this spike are hope of stable government at Centre and consistent FII inflow.

Movers & Shakers

The share price of CMI rose 9 percent after the company received vendor approval from prestigious companies.

Shares of Ujjivan Financial Services and Coal India fell 1.2 percent after the announcement of an interim dividend.

Key Market Drivers

  • China is targeting a GDP growth range of 6 to 6.5 percent this year, down from 6.6 percent in 2018.
  • Top trade officials from America and China are holding talks to negotiate a comprehensive trade deal.
  • UK Parliament vote on No Brexit Deal with MPs vote by a majority of 211 to seek delay to EU departure.
  • India has to announce its trade balance data which is expected to be between 14.5-15B Dollar.
  • RBI will release its Forex Reserve Data this week which is expected to be around 403B Dollar.

Event Watch

    International:

  • FOMC meeting
  • Japan trade balance data
  • UK CPI data
  • BOE meeting
    Domestic:

  • Indian CPI YoY.
  • India CAD data

Stocks To Watch

Aarti Industries, IIFL Holdings, RIL and HDFC Bank on Upside And Coal India 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 a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.

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