MARKET OVERVIEW :
Sensex, Nifty recover to trade higher; Bajaj twins shine.
Broad market indices, including Nifty 50 and mid-, small-cap, drag markets lower Bajaj Finance jumps 4% as board to meet next week to consider raising funds.
Nifty Bank gains half a percent lifted by Kotak Bank and BoB Sensex gains marginally; Bajaj twins shine; Infy top loser at this hour Banks and financial services gain among sectors in a largely lacklustre trade Nifty flat at 19,664.55; Bajaj Finance, Maruti top gainers; Axis Bank, LTI Mindtree drag Puneet Pal, head-fixed income, PGIM India Mutual Fund
Share Market Updates: Sensex and Nifty were flat to higher after clocking some losses on Monday. Delta Corp plunged 15% to hit the lower circuit following GST demand; Bajaj Finance and twin Finserv gained the most
Stock market update: SBI, Reliance, Delta Corp, Bajaj Finance, JSW Steel in focus today.
Share Market Updates: Benchmark indices Sensex and Nifty were a tad higher in volatile trade on Monday amid weak global markets and outflows from foreign investors. Asian shares traded on a cautious note as central banks around the world warned of higher interest rates for longer and investors braced for key inflation data from the US and Europe. Markets will also be closely watching China’s economic data for any signs of a recovery.
Nifty came under selling pressure last week amid global cues and heavyweights especially from BFSI space led Nifty to move below 19700 levels. Despite buying seen among Technology heavyweights, Nifty lost nearly 2.5% last week. Even broader markets saw some profit booking where both midcap and small cap indices closed the week with nearly 2% losses. Going ahead, we expect Nifty may find it tough to move beyond its VWAP levels of 19900 in the settlement week.
Bank Nifty significantly underperformed Nifty with declines of almost 3.5% during the week and erased gains of the last 2 weeks. Despite outperformance from PSU banks, severe selling pressure among key heavyweights led bank nifty to close below 45000 levels. Going ahead, we expect move above 45500 could be crucial for renewed strength during settlement week.
We believe that global monetary tightening has entered its last phase with key central banks like the Fed and BOE pausing on rate hikes. RBI will also be on a long pause with government taking fiscal steps to manage inflation. We think that the broad range of the benchmark 10yr bond yield will be between 7.00% to 7.25% over the next couple of months. Given the inclusion of Indian government securities in the JP Morgan EM Index and the recent rise in yields which has pushed back the expectations of rate cuts, yields are entering attractive territory and investors can look to increase allocation to Fixed Income as growth is expected to slow down towards the end of the year.
Investors with medium to long term investment horizon can look at funds having duration of 3-4yrs with predominant sovereign holdings as they offer a better risk reward currently. Investors having an investment horizon of 6-12 months can look at the money market funds as yields are attractive in the 1yr segment of the curve.
Oil prices rise as investors focused on a tighter supply
Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.
Brent crude futures climbed 32 cents, or 0.3%, to $93.59 a barrel by 0434 GMT after settling 3 cents lower on Friday.