Below is the View On weekly market quote by Sanjeev Zarbade, Vice President, PCG Research, Kotak Securities
It was one of the worst weeks for several months as Global markets signed off on a weak note. Geopolitical tensions between the US and North Korea took the centre stage as each side threatened the other with dire circumstances. The crisis started with the announcement by North Korea that it has the capability to fit smaller nuclear weapons on missiles. It further warned that it is considering targeting the US base of Guam with a missile. The US also responded with dire warnings. Indian equities also sold off for the week with the Sensex ending 3.3% down. Several major corporate results were announced during the week. Among them, the results of Tata Motors, BHEL, Sun Pharma and SBI missed the street estimates. These stocks lost substantial value during the week. The midcap index lost 5.6% for the week. Going ahead, the focus would be on the remaining set of results.
The fundamentals of the Indian economy is continuously improving, which gives greater confidence in the medium to long term potential of Indian equities. In the context of the recent announcement by SEBI regarding the 331 stocks which have shell companies, we reiterate investors to strictly invest only in companies with good corporate governance and strong balance sheets.
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