Market In Tune To Hit New All-Time High

Share Market Weekly

Our Analysis

The market witnessed pressure last week as RBI kept the repo rate unchanged. Sensex and Nifty both were range bound and witnessed selling pressure mainly at the start of the week. The pressure was largely seen among banking stocks. Market sentiments were also weighed from US-China trade talks along with the US Fed policy meeting on Wednesday.

Fed kept rates on hold in its final meeting of the year and pointed favourable economic outcome over next year. Since Wednesday, markets were showing a marginal uptrend. Nifty opened on Monday at 11939 and closes at 12,086 on Friday. Meanwhile, Sensex ended on a strong note at 41,009 on Friday up by ~500 points over a week.

Market witnesses rally over easing trade tensions between US-China and UK elections. US-China as both countries are close to finalizing modest trade agreements that would de-escalate their 17 months trade war. Boris Johnson won as a British Prime Minister; a victory will end uncertainty over Brexit. These developments subsidized the prolonged crisis of fear and cheer the markets across the globe including ours. In the coming week, markets will take a cue from the press conference of FM on Friday.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, Nifty was shifted into range bound action. At close, Sensex was up by 42.28 points at 40,487.43 and Nifty was up by 16 points at 11,937.50.

2) On Tuesday, the Indian market remained under pressure led by banking stocks. Sensex ends 248 points lower by 0.61% at 40,239.88 while Nifty sheds by 80.70 points by 0.68% and ends at 11,856.80.

3) On Wednesday, Sensex was up by 172 points by 0.43% at 40,412.57 and Nifty up 53.40 points by 0.45% at 11,910.2

4) On Thursday, Indian indices ended high on a second consecutive day. Sensex was up 169.14 points at 40,581.71 while Nifty ended up 61.60 points by 0.52% at 11,971.80.

5) On Friday, Sensex was up by 428 points at 41,009 and Nifty was up by 114 points at 12,086.

Broader Index & Global Market:

-Globally, major market indices were mostly skeptical due to the US Fed meet. Fed held its benchmark interest rates shifting attention to updated projections. US stocks have shown recovery post-meet outcome. All eyes are on the US-China trade deal now.

-On the domestic front, all major indices are trading in red led by the GST council meeting. All eyes are on the meet and some positive outcomes can take the Indian market to the next higher levels.

Movers & Shakers

Shares of Biocon Ltd have surged ~5% as the company launched cancer drugs in the US.

Shares of Yes Bank tanked more than 15% in last week as Yes Bank seeks SEBI exemption for Rs 2000 crores QIP in Jan.

Key Market Drivers

  • GST Council meeting held on 18th December 2019.
  • Promoters trust in new tax havens.
  • US-China trade deal
  • US retail sales for November
  • Oil Prices

Event Watch

International:

  • US offers China tariff rate cut; announcement imminent.

Domestic:

  • GST Council meeting
  • INR Price
  • Macro data outcome

Stocks To Watch

HDFC Bank Ltd On Upside while, Zee Entertainment Ltd on Downside.