Tit- bits
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The domestic indices are likely to come off from these levels, as market participants are afraid of taking leverage positions at current levels amid a rise in volatility.
What is irrational and hilarious is that when this quarter GDP growth of India would be near ZERO, the Nifty is near 10000. Therefore, a stock market contrary to the popular perception is NEVER a barometer of any economy in the short term -- though in the long term markets will reflect the macroeconomic characteristics of any economy. The point to drive home is that: Stock Markets will rise, if people BUYs stocks and will touch nadir due to sentiment turning extremely pessimistic. In short term, rise or fall of tbourses has nothing much to do with the fundamentals of any economy, it is purely sentiment driven.
With Indians counting themselves among the 7 - worst Covid - 19 affected nations, this irrational upmove of the indices defy all logic and imagination. This shows how, people all over the world are a prisoner of the term "Herd Mentality".
Narendra Modi government have been presenting us with, a rickety economy since the ill conceived demonetisation, which was touted to kill the burning economic evils in one go, was implemented, with all force and tall talks; bereft of any accountability or scruple. Now this Covid - 19 episode is likely to make things even worse, if Rnot worst. The unemployment figures according to some estimates have already touched 14 crore plus. What will happen in the next few months is an obvious conclusion. Those who are saying the worst is behind us, are simply building castles in air. Just wait and watch!!
What is irrational and hilarious is that when this quarter GDP growth of India would be near ZERO, the Nifty is near 10000. Therefore, a stock market contrary to the popular perception is NEVER a barometer of any economy in the short term -- though in the long term markets will reflect the macroeconomic characteristics of any economy. The point to drive home is that: Stock Markets will rise, if people BUYs stocks and will touch nadir due to sentiment turning extremely pessimistic. In short term, rise or fall of tbourses has nothing much to do with the fundamentals of any economy, it is purely sentiment driven.
With Indians counting themselves among the 7 - worst Covid - 19 affected nations, this irrational upmove of the indices defy all logic and imagination. This shows how, people all over the world are a prisoner of the term "Herd Mentality".
Narendra Modi government have been presenting us with, a rickety economy since the ill conceived demonetisation, which was touted to kill the burning economic evils in one go, was implemented, with all force and tall talks; bereft of any accountability or scruple. Now this Covid - 19 episode is likely to make things even worse, if Rnot worst. The unemployment figures according to some estimates have already touched 14 crore plus. What will happen in the next few months is an obvious conclusion. Those who are saying the worst is behind us, are simply building castles in air. Just wait and watch!!
Besides, higher margin requirements in the F&O segment is also detering the punter to go high leveraged.
The benchmark indices added another 3% on June 1, the first day of lockdown 5.0 on the hope of a fast economic revival, as the government allowed resuming economic activities in non-containment zones.
However, with Rs.20 lakh crore economic package for Covid - 19 pandemic, and Rs.1000 crore for the Amphan affected people, and with a very low visible revenue stream during the last couple of months, this government is virtually at the end of its tether.
I don't agree with those theories which speak of higher revenues due to robust economic package. With so much uncertainty still wrapped around Covid - 19, it would be beggar our imagination, if we underestimate the loss in GDP growth, due to this catastrophe.
Gold prices are likely to come down as more and more countries ease lockdown curbs, lowering the risk sentiment. On MCX, gold futures were down marginally at ₹47,137 per 10 gram.
Gold prices are likely to come down as more and more countries ease lockdown curbs, lowering the risk sentiment. On MCX, gold futures were down marginally at ₹47,137 per 10 gram.
Moreover, Moody's downgrading of India's sovereign rating on Monday., will not go well with FPIs, DIIs nd HNIs.
In such circumstances, I foresee the Nifty to test 9300, before touching 10000.
Meanwhile, Granules India Ltd hit Rs.179.75 intraday, after it was recommended by a consultancy in Money Control.
SKM Egg Products Export Ltd also touched Rs.37. The demand for eggs is likely to be high in global markets in the short term, primarily due to poultry industry suffering in the hands of Covid - 19 catastrophe.
Also, my recently recommend SAIL made a high of Rs.31.10, while HINDALCO Industries Ltd made a high of Rs.143.50, intraday.
Also, my recently recommend SAIL made a high of Rs.31.10, while HINDALCO Industries Ltd made a high of Rs.143.50, intraday.
The scrip of National Fertilisers Ltd touched Rs.27.70, intraday, today. It almost doubled from the price of Rs.14.70, it made post nation wide Lockdown. I have been recommending a buy on dips for the scrip since some time.
I would suggest profit booking (if any) and wait on the sidelines, for the arrival of the monsoon, in the entire country.
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