Will Historic Win Lead Historic Bull Run Ahead?

Share Market Weekly

Our Analysis

Exit polls indicating the clean sweep for Congress and easy Win for BJP led NDA government cherished investor sentiments. Indias trust over the NDA government was clearly visible on the very first day of this week where markets galloped almost by 900 points initially. The miraculous run in the markets marked its biggest single-day gain of a decade and created a new history for the investors and markets as well. BankNifty which is the backbone of this rally was seen on a sprint during the week. On the back of the same, Nifty and Sensex climbed its fresh all-time high of 12000 and 40000 respectively. However, this historic cannonball run braked by the bears on the expiry day by profit bookings which led markets to end on the muted note. Modi led BJPs historic 300 seat win was compensated by markets with a swing of 1300 points.

On the weekend bulls roared back again with a rally of 500+ points on Sensex. However, post-election results the investor sentiments again tied to the key concerns like economic slowdown, liquidity issues, and policy reforms. The clear win of Modi led government has enlightened the hopes of the bold decision on the economic revivals, as Modi 2.0 first 100-day plan starts to take a shape owing to which sector-specific buying have already kicked off this weekend. The upcoming period would create a strong foundation for the next bull run, so expect short term downtrends too. Markets have stretched to its all-time highs and there may be some corrections to lead the march ahead. Infrastructure, cement and auto sector is expected to see a revival in the coming days so be ready to pick the best stocks for you to benefit from Modis reign.

This Weeks Market Highlights:

Benchmark Indices:

1) On Monday, In the anticipation of Phir Ek Bar Modi Sarkar, the Indian share market has marked its biggest single-day gain of a decade since Jan 25, 2009. Nifty tasted its all-time closing high at 11828.25 up 4.45 percent whereas Sensex closed at 39352.67. Highly traded BankNifty rallied to its all-time high and closed at 30,759.70.

2) On Tuesday, After a two day's of phenomenal run by bulls, the Indian share market witnessed the profit booking in the second half of today's trade closing the index in negative territory. the Sensex decline by 382.87 points at 38969.80, while Nifty drop by 119.20 points at 11709.10. The broader market followed the same pattern with Mid & Small-Cap down nearly 1 percent.

3) On Wednesday, the Indian benchmark indices were seen hovering in the same range closed the day with clueless. The Sensex grew by 140.41 points at 39110.21, while Nifty up by 28.80 points at 11737.90. however, the banks continued to outperform the market, with Indusland Bank leading the way followed by Icici & sbi bank. On the sectoral front, bank nifty, Infra & Energy were on the green side, On the other hand, FMCG, Media & IT closed in the red.

4) On Thursday, The remarkable sprint of the last three days ended in a red zone. The sell on news phenomena was playing its role perfectly, where indices lost their gains to profit bookings. Modi tsunami was visible in the election results which turned the game for investors. HDFCBK & ITC kept the market under pressure. The Sensex declined by 298.82 points at 38811.39, while Nifty drop by 55.40 points at 11682.50. The sectors who contributed to the most were the Media, Infra & reality.

5) On Friday, Indian equity benchmarks opened higher in todays trade, led by the gains in HDFC Ltd, HDFC Bank, and Reliance Industries Ltd.

Broader Index & Global Market:

- On the global front, the Us market was trumped by volatility reacting to the news flow regarding government blacklisting the Chinese Huawei company, escalation of the trade talk indicating the deal going nowhere. additional to that the minute of monetary policy indicated the patient approach.

- In the broader market, The Mid & Small Cap had seen trading mixed with gain in selected sectors such as Infra, Reality, Cement, NBFC amid the clear win of BJP.

Movers & Shakers

Shares of KEI IND surged nearly 22 percent. the company after The cable manufacturer reported a 21 percent jump in net profit in the quarter ended March 2019 at Rs 60 crore, compared to Rs 49.5 crore in the year-ago period. Revenue of the company grew by 17.7 percent at Rs 1,211.4 crore versus Rs 1,029.3 YoY.

Shares of Jubilant Lifesciences dropped more than 13 percent in a week after The company reported a net loss of Rs100.65cr in Q4FY19 on account of a one-time loan settlement with International Finance Corporation (IFC). The company had posted a consolidated net profit of Rs152.40cr in the year-ago period.

Key Market Drivers

  • Oil prices jumped as much as 1 percent on Monday after Saudi Energy Minister Khalid al-Falih indicated there was a consensus among OPEC and allied oil producers to continue limiting supplies.
  • Forex reserves recorded up by $1.36 bn to $420.05 bn
  • The Reserve Bank of India (RBI) board on Tuesday stated that they will not be extending a credit line to struggling NBFCs as it felt that there was no liquidity issue but there were solvency concerns in some of the large entities
  • Morgan Stanley expects Brent to hit $75-80 range in H2CY2019
  • NSE gets partial relief from Securities Appellate Tribunal (SAT).
  • Sebi proposes a review of buyback norms for companies with NBFC, HFC as subsidiaries
  • RBI may not increase the age limit for bank CEOs over 70 years: Report

Event Watch

International:

  • Japan PPI Services YoY
  • US Wholesale Inv MoM
  • Japan Industrial Prod. YoY
  • The US-China trade talk
  • Crude Movement

Domestic:

  • India GDP YoY
  • India GVA YoY
  • India Fiscal Deficit
  • INR Price
  • Q4FY2019 Earning

Stocks To Watch

ESCORT & BEML On Upside while SYMPHONY & STRTECH on Downside.

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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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