INSUBCONTINENT EXCLUSIVE:
The domestic equity market witnessed buying by FPIs and DIIs during the week gone by on improved sentiments and improving prospects for the
FPIs have initiated buying equities aggressively and covered their short positions, which has relieved Mr Market and cleared a major
overhang.
Therefore, new highs are expected sooner than earlier estimates
IRCTC witnessed a bumper listing gain of 101 per cent over its issue price, which signalled that people are ready to take risk and increase
equity exposure in the market
This, in turn, can help the government to quickly divest some of the companies that are up for strategic disinvestment
Money in the hands of the government will eventually help bridge fiscal deficit and boost infrastructure spend necessary to fuel the growth
in economy.
When IMF and World Bank beat the drum of slowdown in any economy, it means the phase is already over and better times are ahead
tax cuts and recapitalisation of PSU banks, FPIs paring short positions and continued domestic inflows now point to one thing, that the
Unless something dramatically goes wrong on the global front, Nifty50 looks all set to touch new highs before Christmas.
Event of the
weekThe September quarter earnings season continued with a bang, as Mr Market felt the glitters and jitters in the earnings numbers from HUL
and ZEE Entertainment and others during the week.
HUL reported a strong set of numbers with PAT growing nearly 21% year on year, on cost
control and margin improvement
ZEE Entertainment reported a disappointing marginal increase in PAT at 6.87 per cent, mainly due to a one-time loss of Rs 170 crore, which
raised concerns over corporate governance.
Technical OutlookNifty50 is likely to face resistance at higher levels
The 11,950 level is likely to act as a strong resistance
However, some profit booking is expected at 11,700 level in the near term
There is marked weakness in Bank Nifty compared with Nifty50, which makes the ongoing rally a fractured one, susceptible to sharp falls in
likely to extend to individual sectors, which have largely been underperformers
Smallcaps and midcaps are likely to witness buying interest
end of Samvat 2075.
International metal prices have bottomed out after a few quarters of steady declines
Precious metals are also showing signs of consolidation and can move higher in the near future
Hence, investors may deploy fresh funds at current levels, keeping in mind their appropriate diversification and individual risk-taking
abilities.
Nifty50 ended the week 3.2% higher at 11,661.
