Tit - bits

Today when I'm writing this report, the  BSE Sensex was at 34,273.90 up 293.20 points (+0.86%) while NSE was trading at 10,141.60 up 112.50 points (+1.12%), taking cues from strong global markets, though there is nothing to cheer about in the Indian  economy; except those hackneyed talks of a gradual lifting of Lockdown and stimulus package -  sentiment boosters.

The market breadth was quite strong. On the BSE, shares 1,956 rose and 492 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined.

Meanwhile, my recommended SKM Egg Products Ltd (Rs.37.30) today hit the 1st target of Rs.39, as it touched Rs.39.75 intraday. Book some profits.

Granules India Ltd also made a high of Rs.187.80, almost near the 1st target of Rs.189.

The metals (commodity) basket is doing well today also. Vedanta Ltd recommended on 25 March, in this blog around Rs.89/90 made a high of Rs.106.25 today, while Hindalco Industries Ltd touched Rs.151 today. The scrip of SAIL recommended along with the other metal counters made a high of Rs.33.80.

With so much negativity around, including Moody's downgrade, it is surprising to see the Indian markets going up piggybacking only on sentimental push -- nothing on ground in the domestic front. People are job less, with their monetary  reserves almost empty. I wouldn't suggest any fresh buy except continue to be a little positive on Metals (commodity), Telecom, Media, Brewery and IT sectors. If you are willing to compulsorily play in the markets then stick to the leaders in the above  mentioned sectors and choose beaten down scrips, from this space.

In another significant development as SC considers petition for interest waiver in loan moratorium period, RBI says doing so would make a huge dent in stability of financial institutions.

Default in repayment of loans by companies (other than financial services) up to September-end and extendable by another six months will not be counted as default under IBC. This is net negative for the banks and FIs.

This market has no head or tail. Banking stocks rose yesterday, even when the government gave 3 months moratorium on paying EMIs. I don't foresee the Indian bourses too high from here. However, in the short term a stock market is always sentiment driven.