Benchmark indices extend winning streak to three sessions; broader market outperforms.
Daily Market Review:
The Indian stock market continued from where it left last week. Both frontline indices gathered strength as the day progressed.
With crude oil prices softening a bit and the Indian rupee pulling back after hitting a 16-month low, market bulls kept bears at bay for the third straight session. The 10-year bond yield dropped 0.8% to 7.73% – the second consecutive session of decline.
The strength was not just limited to large-cap stocks. In the broader market, the Nifty Midcap and Smallcap accumulated solid gains of 1.4% and 1.7%, respectively.
Gains were supported by a strong market breadth with gainers outnumbering losers in a ratio of 5:2.
Barring Nifty IT (-1.9%), all sectoral indices had a good outing. PSU Bank (+2.7%), Pharma (+2.4%) and Realty (+1.5%) topped the gainers list.
The MarketSmith India IND 47 index, our proprietary list of the top 47 stocks in chart and fundamental characteristics, gained 1.4% today.
India’s frontline indices are now trading 3-4% below their all-time highs. However, broader market indices have corrected steeply and are down 13-18% from their record highs.
Despite a massive correction, the Nifty Smallcap managed to hold above its recent bottom and recorded a Follow-Through Day on May 25 (Friday).
– Be cautious with new purchases
– Form a defensive game plan for your portfolio
– Stay disciplined and exercise sound sell rules
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