Ten thousand points or 14.28 percent is a spectacular gain by any standards and should be taken as a huge positive. The markets are witnessing huge capital inflows in which FPIs were put to sleep with their bearish mindset and on the other hand, domestic funds are full of SIP funds, which have now started crossing Rs 25,000 crore monthly.
At the end of the week, BSE SENSEX gained 963.87 points or 1.22 per cent to close at 79,996.60 points, while NIFTY gained 313.25 points or 1.30 per cent to close at 24,323.85 points.
In the broader markets, BSE100, BSE200 and BSE500 gained 1.57 per cent, 1.71 per cent and 1.91 per cent respectively. BSE MIDCAP gained 2.77 per cent, while BSE SMALLCAP rose 3.88 per cent. BSE SENSEX gained in three of the five sessions and lost in two, while NIFTY gained in four sessions and lost in one. The benchmark indices hit new all-time highs, and the intraday high of BSE SENSEX was 80,392.64 points and the closing maximum of 80,049.67 points, both reached on Thursday, July 4. The intraday high of NIFTY was 24,401 points, while the closing high was 24,323.85 points. The intraday high was reached on Thursday, while the closing high was reached on Friday.
The Indian rupee lost 10 paise or 0.12 per cent to close at Rs 83.48 per US dollar. Dow Jones won in three of the four sessions and lost in one. It rose 257.01 points or 0.66 percent to close at 39,375.87 points.
A sectoral rotation is taking place and this week it was the turn of IT stocks. The BSE IT sector gained the most with 4.15 percent. Apart from IT stocks, the initial boost was given by HDFC Bank when the FPI limit fell below 55 per cent and fresh FPI buying emerged. This boosted the stock, which rose from Rs 1,684 to a high of Rs 1,792 before profit-taking saw the stock close at Rs 1,648, a weekly loss of Rs 36 or 2.14 per cent.
The date of the Union Budget was announced on Tuesday, July 23, along the expected lines. Also this week July futures would expire on Thursday, July 25, making it a more volatile week. Keeping this in mind, the IPO flow on the main board seems to have stopped for the moment.
In primary market news, we had two listings and two issues open and closed for subscriptions. The first stock to list was Allied Blenders and Distillers Limited, which listed on Tuesday, July 2. The company had issued shares at Rs 281. On the day of listing, the closing price was Rs 317.85, a profit of Rs 36.85 or 13.11 per share. penny. By the end of the week, the price had risen to Rs 343.90, a gain of Rs 62.90 or 22.38 percent. The second stock to list was Vraj Iron and Steel Limited, which had issued shares at Rs 207. The stock was listed on Wednesday, July 3. The stock closed at Rs 251.95, a gain of Rs 44.95 or 21.71 per cent. Over the remaining two days, the price rose to close at Rs 260.95, a gain of Rs 53.95 or 26.06 percent.
The first issue to be opened and closed for subscription was that of Emcure Pharmaceuticals Limited. The issue consisted of a fresh issue of Rs 800 crore and an offer for sale of 1,14,28,839 shares in a price band of Rs 960-1008. The issue was subscribed in total 68.4 times, with the QIB portion subscribed 191.24 times, the HNI portion subscribed 49.32 times and the Retail portion subscribed 7.36 times. There were 28.70 lakh applications in total.
The second issue was by Bansal Wire Industries Limited, which was subscribed 62.76 times in total. The price band was Rs 243 to Rs 256. The issue consisted of a fresh issue of Rs 745 crore. The QIB part was subscribed 153.8 times, the HNI part was subscribed 54.21 times and the retail part was subscribed 14.37 times. There were 21.65 lakh applications.Markets need a correction to become healthy. The moment is one that people cannot guess. Whether there will be one before or after the budget is a million-dollar question and has been speculated for the past few weeks. TI results will begin this week, and TCS will announce them on Thursday, July 11. This would be a crucial outcome as TI stock has risen quite a bit on expectations that the turnaround in TI stock as far as results are concerned is here. Only the results would clarify the same.
FPI activity in the markets remains confusing as they alternate between buying and selling. For the last three days they were buyers in the spot market, while the previous three days they were sellers. Their short positions around the timing of the election results have narrowed significantly.
Hitting the markets next week, the sector rotation is expected to continue. As a result, there would be volatility and strong bilateral movements. In such a situation, taking a call is always difficult and would require quick action. The market has momentum and a lot of participation, with newer stocks participating. What it lacks is depth, as on several days we saw market declines eclipse gains, indicating that a few stocks are propping up the markets. In such a situation, it is necessary to take some money off the table to invest if compelling opportunities present themselves.
As new highs are reached once again, the market mood and optimism favor the bulls. However, the bears are waiting to get their foot in the door and pounce on the bulls, who seem to have exhausted almost all their resources. In the coming week, I would expect the bears to come back and take control for the time being.
In conclusion, trade cautiously and as mentioned above, expect sudden swings and mood swings in the markets.(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. Views expressed are personal)
At the end of the week, BSE SENSEX gained 963.87 points or 1.22 per cent to close at 79,996.60 points, while NIFTY gained 313.25 points or 1.30 per cent to close at 24,323.85 points.
In the broader markets, BSE100, BSE200 and BSE500 gained 1.57 per cent, 1.71 per cent and 1.91 per cent respectively. BSE MIDCAP gained 2.77 per cent, while BSE SMALLCAP rose 3.88 per cent. BSE SENSEX gained in three of the five sessions and lost in two, while NIFTY gained in four sessions and lost in one. The benchmark indices hit new all-time highs, and the intraday high of BSE SENSEX was 80,392.64 points and the closing maximum of 80,049.67 points, both reached on Thursday, July 4. The intraday high of NIFTY was 24,401 points, while the closing high was 24,323.85 points. The intraday high was reached on Thursday, while the closing high was reached on Friday.
The Indian rupee lost 10 paise or 0.12 per cent to close at Rs 83.48 per US dollar. Dow Jones won in three of the four sessions and lost in one. It rose 257.01 points or 0.66 percent to close at 39,375.87 points.
A sectoral rotation is taking place and this week it was the turn of IT stocks. The BSE IT sector gained the most with 4.15 percent. Apart from IT stocks, the initial boost was given by HDFC Bank when the FPI limit fell below 55 per cent and fresh FPI buying emerged. This boosted the stock, which rose from Rs 1,684 to a high of Rs 1,792 before profit-taking saw the stock close at Rs 1,648, a weekly loss of Rs 36 or 2.14 per cent.
The date of the Union Budget was announced on Tuesday, July 23, along the expected lines. Also this week July futures would expire on Thursday, July 25, making it a more volatile week. Keeping this in mind, the IPO flow on the main board seems to have stopped for the moment.
In primary market news, we had two listings and two issues open and closed for subscriptions. The first stock to list was Allied Blenders and Distillers Limited, which listed on Tuesday, July 2. The company had issued shares at Rs 281. On the day of listing, the closing price was Rs 317.85, a profit of Rs 36.85 or 13.11 per share. penny. By the end of the week, the price had risen to Rs 343.90, a gain of Rs 62.90 or 22.38 percent. The second stock to list was Vraj Iron and Steel Limited, which had issued shares at Rs 207. The stock was listed on Wednesday, July 3. The stock closed at Rs 251.95, a gain of Rs 44.95 or 21.71 per cent. Over the remaining two days, the price rose to close at Rs 260.95, a gain of Rs 53.95 or 26.06 percent.
The first issue to be opened and closed for subscription was that of Emcure Pharmaceuticals Limited. The issue consisted of a fresh issue of Rs 800 crore and an offer for sale of 1,14,28,839 shares in a price band of Rs 960-1008. The issue was subscribed in total 68.4 times, with the QIB portion subscribed 191.24 times, the HNI portion subscribed 49.32 times and the Retail portion subscribed 7.36 times. There were 28.70 lakh applications in total.
The second issue was by Bansal Wire Industries Limited, which was subscribed 62.76 times in total. The price band was Rs 243 to Rs 256. The issue consisted of a fresh issue of Rs 745 crore. The QIB part was subscribed 153.8 times, the HNI part was subscribed 54.21 times and the retail part was subscribed 14.37 times. There were 21.65 lakh applications.Markets need a correction to become healthy. The moment is one that people cannot guess. Whether there will be one before or after the budget is a million-dollar question and has been speculated for the past few weeks. TI results will begin this week, and TCS will announce them on Thursday, July 11. This would be a crucial outcome as TI stock has risen quite a bit on expectations that the turnaround in TI stock as far as results are concerned is here. Only the results would clarify the same.
FPI activity in the markets remains confusing as they alternate between buying and selling. For the last three days they were buyers in the spot market, while the previous three days they were sellers. Their short positions around the timing of the election results have narrowed significantly.
Hitting the markets next week, the sector rotation is expected to continue. As a result, there would be volatility and strong bilateral movements. In such a situation, taking a call is always difficult and would require quick action. The market has momentum and a lot of participation, with newer stocks participating. What it lacks is depth, as on several days we saw market declines eclipse gains, indicating that a few stocks are propping up the markets. In such a situation, it is necessary to take some money off the table to invest if compelling opportunities present themselves.
As new highs are reached once again, the market mood and optimism favor the bulls. However, the bears are waiting to get their foot in the door and pounce on the bulls, who seem to have exhausted almost all their resources. In the coming week, I would expect the bears to come back and take control for the time being.
In conclusion, trade cautiously and as mentioned above, expect sudden swings and mood swings in the markets.(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. Views expressed are personal)
