The Indian financial market commenced the week on a desolate note which resulted in it teetering on the edge of a cliff. This left investors high and dry over what the future holds for them as the market bulls had just received a surprise inspection from the bears. The reason for the market slide was firstly due to the rupee slithering continuously and that too after the intervention of the central bank. Moreover, the second reason is the runaway fuel prices the Indian public is grappling with. However, on Thursday and Friday the market got a reprieve as the bulls finally came out of hiding which resulted in the advance-decline ratio of both days being in favour of the gainers.
The Nifty and Sensex commenced the week on a negative note which resulted in them having a downward slide until Wednesday. However, the indexes made one hell of a comeback on Thursday due to the market heavyweights such as Reliance Industries (NS:RELI) and the HDFC doppelgangers gaining some traction. Moreover, on Friday, the indexes oscillated in a small box range formation in the first half of the day but by lunch hour they had got their mojo back which resulted in them hitting their intraday high in the afternoon trading session. The bullish mojo returned to the market due to the auto stocks ascending steeply. However, all this bullish vigour on Thursday and Friday couldn’t save the indexes from closing the week in the red as the Nifty fell by 0.8% whilst the Sensex tumbled by 0.7%.
On the sectoral front, Nifty Pharma, Metal and IT were the Charlie’s angels of the market as they attracted all the limelight with their strong advances of 2.6%, 1.6% and 1.9%. On the flip side, Nifty PSU Bank and FMCG played spoilsport as they slipped by 5.4% and 4.7%, respectively.
The Rupee this week got hammered viciously and that too against all major currencies. The Rupee hit an all-time low of 72.10 against the US greenback which put its fall be in 2018 at 12%. Moreover, the Rupee failed to perform against the British Pound and Euro too as it fell to 93.26 and 83.17, respectively. Furthermore, the Reserve Bank of India tried to blame the fall of the Rupee upon trade war issues, higher crude prices and the crisis in Argentina and Turkey. But it is obvious that the problem is related to weak internal statistics as no other emerging market currency is falling at this rate and that too against all major pairs.
This week Sun Pharmaceutical Industries and Infosys (NS:INFY) captured the glare of the media. Sun Pharmaceutical Industries was the town gossip after it received six new observations for its Halol manufacturing facility from the US Food and Drug Administration agency. However, the stock slipped on Friday by 1.9%. Infosys was in the news due to it forming a joint venture with Temasek Holding, in which it shall control 60% of the multiparty venture. The pact shall be finalised by March 2019 and it shall aid Infosys in fortifying its footprint across Southeast Asia. Moreover, the stock ascended by 0.8% on Friday.
In the coming week, there are two data releases that could sway the financial markets. These are:
- CPI Data for August that shall be released on September 12th.
- WPI Data for August that shall be released on September 14th.
Moreover, this week I had released tips for eight stocks which are all doing rather well in their respective short and long positions. The first article focused on Larsen & Tourbo, MindTree (NS:MINT), Future Retail (NS:FURE) and KDDL, whilst, the second article focused on Reliance Industries, Godrej Industries (NS:GODI) and two bonus stocks. If you would like more information on these stocks or others then do contact Go Paisa Junction. Moreover, do watch the following YouTube videos (Video 1, Video 2) so as to attain an analysis of the respective stocks. Lastly, from the coming week, for the market tips you shall have to contact us directly as the articles on investing shall be focusing on other issues in the stock market instead of tips as that will be exclusively for people who get in touch us.
Good luck trading.
Sandeep Singh Ahluwalia
WhatsApp: +91-6361196118
MCSI (UK), MSc Fin (UK), MCom (India), BSc Econ (UK)