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Published on 18/06/2019 5:12:27 PM | Source: HDFC Securities Ltd

Market Closing Quote by Deepak Jasani, HDFC securities 18 June 2019

Posted in Market Outlook| #Market Outlook #HDFC Securities

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Below is the Views On Market Closing Quote by Deepak Jasani, Head of Retail Research, HDFC securities

Markets ended with marginal gains on Tuesday after a volatile session that saw the Nifty moving into positive and negative territories. Benchmark indices ended volatile session marginally higher and snapped four-day losing streak, driven by select banks and IT stocks. The Nifty index ended 19.35 points or 0.17% higher at 11,691.5.

Broad market indices like the BSE Small Cap index ended lower, thereby underperforming the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Sectorally, the top gainers were the BSE Oil and Gas, IT, PSE indices. The top losers were the BSE Healthcare and Auto indices.

Most  Asian stock markets rose on Tuesday but gains were capped by investor caution ahead of  a U.S. Federal Reserve policy decision, while crude oil prices dipped as global growth worries overshadowed supply concerns.

European stock markets recovered from early falls on Tuesday after European Central Bank chief Mario Draghi promised more monetary stimulus if the economy does not improve, offsetting another warning on slowing sales from the chip sector.

Jet Airways plunged over 40 percent after landing in bankruptcy court. SBI has approached NCLT to file IBC proceeding against the airline for the speedy recovery of dues.

Domestic passenger growth was at 2.96 percent YoY in May with IndiGo market share dipping at 49 percent against 49.9 percent MoM but SpiceJet market share increased to 14.8 percent versus 13.1 percent and GoAir to 11.1 percent versus 10.8 percent MoM. IndiGo operator InterGlobe Aviation shares gained 1.6 percent after company placed orders worth $20 billion for LEAP-1A engines.

Shares of HDFC Asset Management Company fell 6.3 per cent Tuesday as the firm decided to provide liquidity to certain fixed maturity plan schemes of HDFC MF to deal with cash crunch.

The yield on 10-year bonds fell 10 basis to 6.81 percent Tuesday after touching  6.8  percent, the lowest for the benchmark notes since October 2017.

Markets have punished over leveraged companies/groups severely over the past few days. Having fallen sharply, this process seems to be coming to an end  over the next few days. Fund managers keep latching on to well-run defensive companies with clean management and little debt even though their valuations may not be cheap or even fair. Retail investors are undergoing worst period with their portfolio value dipping everyday while the Nifty seems steady and their recent bottom fishing bets going awry.

Technically, the Nifty remains in a short term downtrend and traders will need  to  watch  if  the  index  can  now  hold above the crucial immediate supports of 11614-11591; else a further correction is likely.

 

HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475

 

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