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IIs bullish, buzz points to stability ahead
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SME Times News Bureau | 18 Mar, 2019
Markets were on a roll in the last week and gained on all five days even
though Thursday's gains could be termed as flat. BSE SENSEX gained
1,352.89 points or 3.69% to close at 38,024.32 points. NIFTY gained
391.45 points or 3.55% to close at 11,426.85 points. BSE MIDCAP was up
2.48% while BSESMALLCAP was up 2.12%. These two that led the rally three
weeks ago have slowed down, but have certainly not lost the momentum.
There have been changes in the groups and under the ‘ASM advanced
surveillance mechanism, margins on big gainers has increased manifold
reducing the activity in those counters.
What is indeed
heartening from the market's performance is the fact that FIIs have
become bullish and are buying in large quantities. On Friday, for
example, bulk data showed that the Vanguard Fund invested over Rs 1,250
crs on a single day. Incidentally FII's bought almost Rs 4,300 cr on
that day.
Confidence in the market place has returned and the
buzz on the street is that there would be stability when the Lok Sabha
election results are declared on May 23. With this feeling sinking in,
the worst fears of a cobbled working majority are receding. It may also
be noted that the benchmark indices are less than 3% away from their
all-time highs. Bank Nifty is at a new all-time high with the private
banks and PSU banks all chipping in.
The first REIT (real estate
investment trust) is being launched with Embassy Office Parks looking
to raise Rs 4,750 crore in a price band of Rs 299-300. The anchor book
was allocated on Friday and the owner/promoter of Avenue Super Marts,
the company which operates D-mart, took a 9% stake. The instrument would
have returns in the form of interest and dividend with the interest
component being taxable and dividend exempt.
The two earlier
avatars of Invits have not done well probably due to lack of knowledge.
While the product looks interesting with expected returns being in the
8.25% -8.5% range, the icing on the cake could be capital gains. On the
flip side, concern could be the interest pay-out which is taxable. The
issue opens on March 18 and closes on Wednesday. The price band is Rs
299-300.
There is another view that investors can make money on
the momentum in the market and then invest in such a "fixed income"
instrument after two months when markets may have peaked out.
Coming
to the week ahead, we have a trading holiday on Thursday for Holi. The
possibility of a correction kicking in on Wednesday is quite likely if
it has not already happened on Tuesday. Momentum is intact and the
markets witnessing healthy volumes with the breadth of the market having
improved significantly. There were no sectoral losers last week and the
one to gain the least was BSEFMCG up 0.09%. Market momentum would
continue and there could be a couple of days of correction. In any case
the bullish mood is intact and FII buying is not going away anywhere.
Continue to ride the momentum and occasionally book profits where one is making good money.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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