March quarter earnings, muted monsoon forecast as well as election uncertainty are capping upside for markets, suggest experts.
Thank God it's Friday!
Benchmark indices staged a relief rally as both Sensex and Nifty rebounded sharply from lows. The S&P BSE Sensex closed with gains of over 150 points while Nifty50 reclaimed 11,600 levels.
However, on a weekly basis, both Sensex and Nifty closed flat with a negative bias.
Let’s look at the final tally for Friday – the S&P BSE Sensex closed 160 points higher at 38,767 while the Nifty50 rose 46 points to close at 11,643.
On the sectoral front, FMCG, power, and auto index witnessed buying while telecom, capital goods, and consumer durable sectors remained in a bear grip.
March quarter earnings, muted monsoon forecast as well as election uncertainty is something which is capping upside for markets, suggest experts.
On the political front, polling in the first phase of the Lok Sabha elections was held on April 11. FII inflows totaled $ 447 mn for the past five days, while DII inflows stood at $ 5.5 mn for the same period.
“The market is consolidating in a narrow range for the past 10 trading sessions. Yes, elections is a key monitorable but I would attribute the consolidation to the poor forecast of the monsoon,” Shailendra Kumar, Chief Investment Officer at Narnolia Financial Advisors told Moneycontrol.
“Going forward, investors should track Nifty Bank because this particular index was the leader of the pack when Nifty made a record highs. Earnings will impact markets, but that will come more in terms of sectors. In the next 45 days, the price gain on the D-St will be a function of election results than earnings,” he said.
Stocks in news:
Banks outperformed as CPI inflation data is expected to be under RBI's targeted level and credit growth is likely to pick up. Axis Bank, and ICICI Bank rose over 1% each.
ITC led the rally as it recorded best gains last seen since October 2018.
Shares of SpiceJet rallied 9 percent after the budget carrier said that it will induct 16 737-800 aircraft to its fleet.
Prabhat Dairy surged 5 percent after the company completed the sale of its shareholding in wholly owned step down subsidiary, Sunfresh Agro Industries to Tirumala Milk Products.
Adani Power shares rallied 5 percent after the power regulator approved higher tariff for Mundra unit.
European market traded with marginal gains US corporate earnings.
Asian markets ended mixed on Friday with Hang Seng rose 0.24 percent at 29,909.76 and Nikkei added 0.73 percent to 21,870.5.Kospi gained 0.41 percent at 2,233.45, while Shanghai Composite ended marginally lower to 3,188.63.