Mar­kets Are Climb­ing Every Wall Of Worry Fear­lessly!!

Dalal Street Investment Journal - - MARKET WATCH -

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.

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