The heavens opened up in Mumbai and we seem to be having a good start to the Monsoon. Let’s keep our fingers crossed and hope that well begun continues in the same manner and we have a good monsoon all over the country. This had a positive effect on the markets which gained on every single day of the week to register gains in excess of three percent. There is optimism post the continued decline in wholesale inflation and positive progress of monsoon. This has also helped in markets expecting another rate cut sooner than later on the back of under control inflation and other positive factors like growth in industrial production.
This optimism was reflected in market movement and a heavyweight stock Reliance Industries led the rally. One has probably forgotten how long ago Reliance gained over 12% in a single week. This reflects the expectation and positive development of “Jio” the 4G telecom venture. There is yet another expectation that the investmentsmade by the company over the last few years would bear fruit and get reflected in the net worth of the company.
In global markets there is nervousness and uncertainty over what would happen with Greece, which is keeping markets on tenterhooks. The pain point is whether they would default and then leave the Euro or settle with some compromise and roll over plan for their debt. The Indian rupee strengthened to Rs 63.59 a gain of 0.73%. FII’s continue to be net sellers and in the last week their sales seem to have increased. They sold Rs 2,600 crs worth of stock. Domestic institutions have been buying aggressively and bought shares worth Rs3,500.
The world joined India in celebrating Yoga day a form of exercise. The day 21st of June is the longest day and the shortest night in the entire calendar year. It indeed should make all of us proud of the fact that this is testimony to one more event which would add weight to the great civilisation that our country is a part of.
June series expires on Thursday and so far the current value of NIFTY is lower than the previous expiry by 94 points or 1.13%. The momentum witnessed last week is powerful enough to take the bulls past the previous level and end the series in positive territory.
The week ahead would have plenty of action with bulls and bears involved in an intense struggle. While the momentum is with the bulls, overseas news flow could give the bears an edge. Watch the action closely for a break out or break down.
