Bulls still in command and control

RBI policy announcement did not make any impact on the market

By Author  |  Balasubramanyam Prabhala  |  Published: 12th Jun 2017  11:14 amUpdated: 12th Jun 2017  4:37 pm
markets

The markets closed firm towards the last for the week. There was a sharp recovery in mid, small and micro cap segment which took a breather for a week. All round buying lifted the sentiment and strong buying was seen. The major events that marked the week were the RBI meet which ended in a status quo without a rate cut or any change in the cash reserve ratio (CRR). This did not have any impact on the market as participants were not expecting any rate cut in this meet.

Nifty closed at 9,668. Bank nifty was firm at 23,700 while Nifty IT closed at 10,442 and the Sensex closed at 31,262. IMD came out with a revised strong prediction of 98 per cent LPA (long period average) better than earlier 96 per cent LPA, this was definitely a booster dose for the bulls, who cheered with a strong buying across the sectors especially the agri sector. Happy investing. Stay invested and do not miss the opportunity.


marketsAcross the board buying was seen in this sector following the IMD revised prediction of an above average rainfall. The leaders clearly took the pivotal position and buying was seen in all seed, fertilizer and agro chemical companies. Also companies in the agricultural segment including tractors and other allied machinery saw a very strong buying.


marketsAll the stockbroking/wealth management companies were on a strong wicket across the board. A few companies, which originally started as pure broking companies and later branched out into asset management company (AMC), wealth management, asset reconstruction company (ARC) third party distribution, retail financing etc were the darlings of the bourses in this week as there was a re-rating in many companies.


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May figures were very strong across 2 wheelers, passenger cars. Many companies hit lifetime highs led by Maruti, which touched 7,400, and still going strong. The corollary effect was felt on all the auto ancilliary industries also which saw a renewed interest after a minor pause.


markets Reports of a fall in the natural rubber prices led to a strong buying in this segment with the leader at 72,900 is baffling the investors, but boosted the entire segment with all tyre companies posting strong gains.


marketsAfter a good correction and a big pause, the fall was arrested in this sector and some buying was seen in the leaders and mid cap segment. Reports of a severe price correction from USA led to a sell off early in the week but recovered after a rejoinder that things are not as bleak as reported in some media reports. Towards the end of the week, many stocks recovered and some mid-cap stocks were racing towards their 52-weeks high.


marketsAfter a long wreckage, pharma companies attracted some buying and many leaders and some midcap stocks attracted some good buying. Some F-T-F (first to file) molecule clearance for Cadila saw very strong buying in the counter and for the first time overtook the market cap of Lupin, which was among the top 5 for a prolonged period.


markets Was very clearly the rocksolid sector and was attracting buying even at higher levels. Both MNCs and domestic leaders in this sector were all strong with concentrated buying.


marketsAs reported earlier, attracted huge buying with PNB Housing leading with a lifetime high and many other leaders hitting 52 weeks high. This will be a multi-year theme as affordable housing got a big boost due to government policies and a lot of action will be seen going forward.


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Barring cement, all companies including paint companies, tiles etc saw huge buying.


marketsAll branded apparels and undergarment companies are hitting lifetime high as reported earlier. This sector got a huge boost in the new GST rates and investors will be hugely rewarded in this segment.