Markets Are Climbing Every Wall Of Worry Fearlessly!!
Sensex touched its lifetime high of 32,699 on October 17 on the auspicious day of Dhanteras, just couple of days before the Mahurat trading session. Major benchmark indices are showing all signs of climbing new highs in the coming days.
Indian markets, in line with the global indices, put up a stellar performance in the past couple of weeks. Sensex was up by 1.82 per cent, while Nifty gained almost 1.68 per cent in the last couple of weeks. Metal index was the best performing sectoral index, up by 2.96 per cent, followed by Realty index which was up by 2.62 per cent and IT index which gained 2.28 per cent. Power index inched up by 1.34 per cent. Bankex was the worst performing index, slipping 1.83 per cent over the last couple of weeks. Mid-cap index gained by 1.33 per cent, while the Small-cap index was up by 1.21 per cent.
Global markets have moved up in the past couple of weeks with almost all indices closing higher, except Hang Seng, which closed in the red marginally. Dow Jones Industrial Average was up by 2.25 per cent and touched record highs. S&P 500 was up by 0.80 per cent, while NASDAQ was up by 0.11 per cent. CAC 40 was the best performing European index, gaining 0.39 per cent followed by FTSE 100 which was up by 0.22 per cent and DAX gaining 0.21 per cent. Nikkie rallied 4.86 per cent and was the world beating index in the last couple of weeks.
The FIIS continued with their selling spree, while the DIIS were seen buying into markets aggressively. FIIS sold to the tune of Rs 5345.76 crore, while DIIS bought stocks to the tune of Rs 5488.65 crore in the past couple of weeks.
The earnings season started on a strong footing with several of the companies reporting earnings that either met the estimates or beat the estimates. However, earnings for banks were disappointing, except for Indusind Bank where the net performing assets (NPAS) were stable and slippages had declined. Metal stocks and the stocks related to commodities have impressed with their earnings so far.
Going ahead, earnings growth and trend in global markets will be the deciding factor for Indian equities. For the long term investors, the market conditions are ripe for investments and the funds flow into equities is expected to remain strong. The earnings in Q2FY18 are expected to be better than previously estimated and markets will cheer the same.
The earnings season started on a strong footing with several of the companies reporting earnings that either met the estimates or beat the estimates. Metal stocks and the stocks related to commodities have impressed with their earnings so far.