Daily Market Review
The benchmark indices started the day on a flat note and gained momentum as the session progressed. Despite a few dips in the mid-session, both the Sensex and the Nifty managed to end the day with decent gains. These gains enabled the key indices to extend their all-time highs.
Opening above the 9,650 mark, the Nifty traded in a range of 9,640.70 – 9,687.20. The index extended its gain from Friday with an increment of 0.22% and closed at 9,675.10 by the end of the session.
The Sensex opened on a higher note at 31,274.74 and gained 0.12%, to end the day flat at 31,309.49. The index traded in the range of 31,198.37-31,355.42.
Lower trading volume was observed on the Nifty, while the Sensex maintained similar volumes as yesterday. Investors are expected to remain on the sidelines ahead of the interest rate decision.
The Nifty Midcap and Smallcap continued their winning momentum as they added gains of 0.33% and 0.39%, respectively.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, closed at a decent gain of 1.06% in today’s trading session, outperforming the benchmark.
Talking about sectoral composites, almost all the indices closed in green. The top three gainers of the day were Nifty Realty, IT, and Pvt Bank adding 0.77, 0.48%, and 0.44%, respectively. And the only two sectors to close in red were Nifty Metal (-0.60%), Pharma (-0.27%).
The government’s announcement of a 3% GST rate on gold, sent jewellery stocks soaring in today’s session. Investors cheered this news as the tax rate came below market expectation of 5%. As a result, names like Titan Company, PC Jeweller, and Tribhovandas Bhimji Zaveri posted good increments, today. The fast paced developments on GST and the target of its July 1, 2017 deadline will be crucial for the future course of markets.
In the next couple of trading sessions, markets are likely to take a cautious stance in anticipation of RBI’s bi-monthly monetary policy review that is due on June 7, 2017. Keeping in mind the current inflation rate and the positive outlook for the monsoon, the central bank is largely expected to keep the key interest rate unchanged.
The Indian markets continue to hold the status of a Confirmed Uptrend with the key indices trading marginally below their all-time high marks. The Sensex dropped a distribution day due to ageing of its April 28 distribution day. The distribution day count now stands at 1.0 and 3.0 for the Nifty and the Sensex, respectively.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.
Disclaimer: William O’Neil India Investment Adviser division, is one of the divisions of William O’Neil India Private Limited, which is a company incorporated under the Companies Act 1956. William O’Neil India Investment Adviser division is a registered investment advisor with the Securities and Exchange Board of India and through its online product, MarketSmith Indiaintends to provide quality equity research material and information to its customers. The investments discussed or recommended through MarketSmith India may not be suitable for all investors and hence, you must rely on your own examination and judgement of the stock and company before making investment decisions. Data provided through MarketSmith India is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Information and discussions made available through MarketSmith India contain forward looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. William O’Neil India Investment Adviser division or its employees / directors or any of its affiliates are not responsible for any losses that may arise to any person who has made investments based on the contents of this document. Past performance never guarantees future results. Investment in equities are subject to market risks and despite the best efforts to provide market leading research, William O’Neil India would like to exhort its users to acknowledge and fully understand the risks involved which might include but not limited to loss of both principal and income. Data and content provided through MarketSmith India is to be consumed only by the intended recipient and must not be redistributed any further.
Registered office address: William O’Neil India, Technomark Building, A-4, NGEF Ancillary Industrial Estate, Graphite India Road, Mahadevapura, Whitefield, Bangalore 560048, Phone: + 91 80 67453802, Fax: + 91 80 6745381, Website: http://www.williamoneil.com/india/, For investor queries:email@example.com; For grievances: firstname.lastname@example.org; For compliance officer:email@example.com, Corporate Identity Number: U74999KA2012FTC066881, Investment Adviser SEBI Regn. Nos: INA200005125 valid till 11 July 2021.