The Indian markets in a broad based rally, surged the most in a month in the last session. Today, the start is likely to see some consolidation and markets after a sharp rally may see some profit taking too. Though, the overall trade is likely to be range bound lacking any major cues and traders will be eyeing important macro data to be announced later in the week for further cues. Some support can come with the report that the Centre's indirect tax mop-up rose 41 per cent in April led by high excise collections, signaling a pick-up in economic activity. A part of the collections was on account of additional revenue measures announced in the current year. There will be some buzz in the auto sector, as the industry body the Society for Automobile Manufacturers (SIAM) has warned that if the government ends up imposing a 30% environment cess on purchase of diesel cars and SUVs as per the recent Supreme Court order, investment in India's auto sector will dry up.
There will be lots of earnings announcements too, to keep the markets buzzing. Century Ply, Zee Entertainment, Morpen Lab, Repco Home, NIIT, EID Parry, SRF, Radico Khaitan and Simplex Infra, among others, will disclose their quarterly earnings.
The US markets made a mixed closing in last session, after a choppy trade, as traders seemed reluctant to make any significant moves amid the lack of major US economic data. The Asian markets too have made a mixed start and while the Japanese market has surged due to weakness in yen, the Chinese market was still weak led by commodity producers amid a slump in oil and industrial metals. Though, its consumer-price inflation held at 2.3 percent in April, in line with expectations.
Back home, Indian benchmark equity indices staged a blockbuster performance on the first day of the week by vehemently rallying close to two percentage points in the session and re-conquering their psychological levels. Sentiments got boosted after a weaker-than-expected US jobs report on Friday left some economists anticipating only one interest rate hike from the Federal Reserve this year. Besides, rise in oil prices and appreciation in the Indian rupee against dollar too supported the markets sentiment, which moved higher on increased dollar selling by banks and exporters and due to capital inflows into the domestic equity market. Some support also came with a recent string of positive corporate results that raised tentative hopes about an improving domestic economy. On the global front, Asian markets ended mostly in red on Monday as investors turned jittery after China’s trade contracted in April and US job growth came in weaker than expected. Back home, the local indices started the session on a sanguine note, with both the benchmarks crossing their respective psychological levels of 25500 (Sensex) and 7800 (Nifty) in very early trade. The bourses further capitalized on the momentum and spurted in noon trades on the back of broad based bottom fishing in undervalued stocks. The northbound journey only concluded with the close of the session helping the key gauges in recovering the ground lost in the week gone by. Finally, the BSE Sensex surged 460.36 points or 1.82% to 25688.86, while the CNX Nifty rose 132.60 points or 1.71% to 7,866.05.
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