Mar­ket View

Al­most all the other sec­toral in­dices were in the green, with the IT in­dex re­main­ing flat over the 15-day pe­riod. Power, Metal and Auto in­dices were up by 3 per cent each, while FMCG in­dex was up by one per cent.

Dalal Street Investment Journal - - CONTENTS -

In­dian eq­uity mar­kets, in line with the global mar­kets, have man­aged to touch record high lev­els this week. In­dian mar­kets have in fact out­per­formed other emerg­ing mar­kets as the Q2 earn­ings have broadly met the street ex­pec­ta­tions and the macroe­co­nomic in­di­ca­tors have sta­bilised. In dol­lar terms, the In­dian eq­ui­ties have out­per­formed the MSCI EM in­dex by nearly 3.5 per cent since mid-oc­to­ber.

Ma­jor In­dian bench­mark in­dex Sen­sex gained 4 per cent in the past cou­ple of weeks, thus out­per­form­ing all the other ma­jor global in­dices ex­cept Nikkie and Ger­man DAX. Nikkie and DAX too gained 4 per cent each. Nifty was up by 3 per cent, even as Mid-cap in­dex and Small-cap in­dex out­per­formed the ma­jor in­dices in the given pe­riod. Mid-cap in­dex and Small-cap in­dex gained

4 per cent and 5 per cent, re­spec­tively. Re­alty in­dex was the best per­form­ing in­dex in past cou­ple of weeks, gain­ing a whop­ping 9 per cent fol­lowed by Bankex. Al­most all the other sec­toral in­dices were in the green, with the IT in­dex re­main­ing flat over the 15-day pe­riod. Power, Metal and Auto in­dices were up by 3 per cent each, while FMCG in­dex was up by one per cent. The US mar­kets touched yet an­other record highs in past cou­ple of weeks with Dow Jones In­dus­trial Av­er­age and S&P 500 gain­ing 1 per cent each in the given pe­riod. Nas­daq was up by 3 per cent. Euro­pean in­dices were all up in past cou­ple of weeks with the FTSE inch­ing up by one per cent, CAC 40 gain­ing 2 per cent and Dax mov­ing up by 4 per cent. Hang Seng was up by 1 per cent and Nikkie gained al­most 4 per cent in past 15 days, while Shang­hai re­mained flat over the given pe­riod.

The FIIS were net sell­ers in the In­dian mar­kets and, af­ter a long time, the DIIS also turned net sell­ers in the eq­uity mar­kets in past 15 days. DIIS’ sell­ing was ex­tremely nom­i­nal though. The re­cent an­nounce­ments by the Gov­ern­ment of In­dia for boost­ing in­fra­struc­ture spend and re­cap­i­tal­i­sa­tion of PSU banks’ bal­ance sheets have cheered up the mar­ket. The mil­lion dol­lar ques­tion is whether or not the strong mo­men­tum will con­tinue in the com­ing days as con­cerns pre­vail over the stretched val­u­a­tions of In­dian eq­ui­ties.

Go­ing ahead, the earn­ings re­ports of In­dian and global com­pa­nies will re­main the key trig­gers for the mar­kets, along with the US fed ac­tion and the ex­pected in­fla­tion data next week in China.

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