Market Cracks Fearing A Lockdown
While the broader markets corrected and interest rate sensitivity underperformed, the pharmaceutical companies and metal stocks emerged strong performers.
Sensex, the key benchmark index, weakened more than 2 per cent in the last fortnight even as the small-caps outperformed. The Small-Cap index was down by 0.82 per cent when the Nifty was down by 1.89 per cent and the Mid-Cap index slipped 2.59 per cent. Banks underperformed, slipping by more than 4 per cent even as the Realty index tumbled by more than 7 per cent. Thus, it was the interest rate sensitivity that heavily underperformed in the past 15 days. The Realty index was the worst performer followed by the Power index which tumbled by more than 6 per cent.
While the broader markets corrected and interest rate sensitivity underperformed, the pharmaceutical companies and metal stocks emerged strong performers. Healthcare index gained by more than 7 per cent and was the top performing index in the past fortnight. Metal index was up by more than 3 per cent even as the FMCG index managed to remain flat with minimal gains. It is expected that the steel prices will remain firm for the next two years owing to the demand conditions. The rise in demand along with the rising prices is creating an unprecedented bullishness in metal counters.
The earnings season so far has been impressive with IT companies declaring positive results but failing to generate enthusiasm among the investors. Wipro sizzled on the bourses as the IT major beat the estimates. In the banking space HDFC Bank could not beat the market estimates; however, the private bank did reflect growth in excess of 18 per cent in terms of profits. Overall, the result season is expected to be good this time around as well, thus continuing the trend of positive results of the past two quarters. Positive results and expectation of increased vaccinations as we hit May is keeping bulls in the game.
The markets, as of now, are fearful of the impact of the increasing corona virus cases may have on the economic activity as more and more state governments are heading for lockdowns of various intensity.
The markets, as of now, are fearful of the impact of the increasing corona virus cases may have on the economic activity as more and more state governments are heading for lockdowns of various intensity. The FIIs have been net sellers in the markets to the tune of Rs 4,642.64 crore while the DIIs have been net buyers to the tune of Rs 1,518.35 crore. Going ahead the markets will be keenly watching the important levels on Nifty and Sensex while also tracking the rising numbers of virus cases and earnings. Experts believe the positive momentum in pharmaceutical and IT stocks may continue even as FMCGs may start performing in line with the markets.
