INSUBCONTINENT EXCLUSIVE:
The domestic stock market had a mixed bag during the week gone by, with investors flocking in and out of stocks amid the state assembly
stocks to react negatively
FPIs and DIIs were marginally net-sellers in the cash market.
The week started on a gloomy note as a whistleblower allegation against
Infosys ADRs and stock reacted immediately with a kneejerk reaction.
This erased the entire outperformance and re-rating that Infosys had
managed to achieve on the back strong earnings
Investors would now wait for the audit committee report on the issue.
But the week had one more negative surprise, this time from the
Domestic telecom firms faced a big blow when the apex court backed the DoT view that these companies have to pay revenue shares on a larger
Vodafone and Airtel will not be only losers in this, it may impact also some of the banks which had lent to these telcos
This stressful scenario is building up mid IUC charges, forthcoming 5G spectrum auctions, market share loss due to competition and they will
definitely be a drag on this sector and might increase systemic risk to the market itself.
Event of the WeekThe earnings season unfolded on
an insignificant note, with some companies such as Avanti Feeds, SBI, ITC and HDFC Life surpassing expectations with strong growth numbers
while two-wheeler and passenger vehicle makers continued to underperform with slower volume growth.
Ground-level slowdown seems to be easing
for now, but it may take time for the economic growth to pick up pace
Till that time, investors will have to keep patience.
Technical OutlookNifty50 has entered a phase of consolidation after facing resistance
The index has formed a small Doji pattern in the weekly timeframe chart, indicating a pause in the unfolding uptrend
The market will gain momentum the moment Nifty crosses the 11,750 mark, which will then swiftly take the index to 12,000 level
keep the market buoyant in the week head
The festive season will bring some cheers, as consumers increase spending, and this will in turn help ramp up sales
Since there is a lot of uncertainty right now, investors should pick up stocks with a basket approach.
Metals and mining, pharmaceuticals,
agriculture, infrastructure are some of the beaten-down sectors which should be considered for stock picking
week 0.66% down at 11,583.
Wish you all a Happy Diwali and a prosperous Samvat year ahead.
