Markets for the week remained under pressure with the Nifty closing lower by almost 4% while high beta sectors like Metals and Energy declined by more than 10% putting pressure on the broader markets.
However, at the current juncture, the Nifty 50 equal-weighted index has completed the setup of ‘Bullish Flag’ after weekly closing near the support zone, and the market may see sustainable recovery on a close above the key resistance of 16123.
Despite heavy and continuous FII selling of more than Rs 2 lakh cr per year, the non-institutional volumes have failed to move below Rs 24,000 cr and this could be the main reason that Indian markets have outperformed US Indices by a wide margin.
We expect markets to post recovery post LIC listing and the financials & automobile sector to lead the gains in the near term.
USDINR for the week ended with gains of more than 0.5% after the Fed rate hike triggered a major rally in USD against most of the developed currencies.
With USDINR closing above 76.5 for the week, we expect an immediate up move towards 79 in the next few days.
Results today– MCX, Bharat Forge
Nifty 50 Index & Spread of Nifty50-Nifty500 Index
Stocks to watch
Positive Read Through
- Alkem Laboratories Says no critical or major observation was identified at the Taloja unit by MHRA online inspection
- Eicher Motors 4Q Net Incom +16% Y/y to 6.1b Rupees, Beats Est. 5.96B; Revenue +8.5% to 31.9b
- Hindustan Aeronautics 4Q Net Income +93% to 31B Rupee vs. 16.1b y/y
- Maruti Suzuki Finalises Site for New Plant in Haryana; Plans $1.4B First-Phase Investment for New Plant.
- Nazara Technologies To give one free share for every share held
- Ambuja Cement, ACC- Adani to acquire Holcim’s stake, open offer price at Rs 385 a share.
- State Bank of India Raises MCLR Lending Rate by 10 BPs Across Tenors
- Paytm- April Gross Merchandise value up 102%, monthly transaction users up 44%
Negative Read Through
- Avenue Supermarts 4Q Net Income 4.66B Rupees Vs. 4.35B Y/y, Est. 5.06b; Revenue 86.1b vs 73b y/y
- Bank of Baroda 4Q Net Income 17.8b rupees vs. loss 10.46b y/y, Misses est. 23.3b; Provisions 49% q/q to 37.4b; Gross NPA 6.61% vs. 7.25% q/q
- CESC 4Q Net Income -4.1% Y/y to 2.59b rupees, Misses est. 3.11b
- Indigo, SpiceJet- ATF prices hiked by 5% to a life high of Rs 1.23 lk/ltr
- Tech Mahindra-Margin misses estimates, Revenue growth steady, deal wins strong
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