Stocks

Momentum likely to continue for Nifty, Sensex

KS Badri Narayanan Chennai August 13 | Updated on August 13, 2021

ONGC, Sun TV, HAL, DHFL, SpiceJet, Sun TV results today

The domestic stock markets, which started the week dull, may finish on a strong note. Analysts expect the benchmarks Nifty and Sensex, to end at new peaks this week, as sentiment has turned more bullish after better IIP and inflation data. Broader markets, which faced strong selling pressure early this week and are in a recovery phase, will continue the momentum, they added.

Global stocks are mixed with the US markets maintaining their bull run. However, most Asia-Pacific stocks are down marginally in early deals on Friday.

The SGX Nifty at 16,370 (730 am) signals a gap up opening of about 40 points, as Nifty futures on Wednesday closed at 16,358.60.

IIP, Inflation data

After two consecutive 6 per cent+ prints, CPI inflation eased to 5.59 per cent on July 21, while core inflation (ex food, fuel and intoxicants) also eased to 5.86 per cent from 6.2 per cent.

A fall in inflation and recovery in IIP will help the central bank continue with its accommodative and easy monetary policy till growth picks up completely, said analysts. However, these are early days and one needs to see the continuity of this trend, they cautioned.

“Today’s CPI inflation, even after easing to sub-6 per cent levels, will likely face headwinds from the pass-through of impending input price pressures, especially core goods inflation may remain under pressure amid high global commodities and margin pressures,” said EMkay Global in a note.

The 13.6 per cent surge in the June Index of Industrial Production was partly propelled by a favourable, albeit fading, base, which distorted the annualised figure. However, sequentially, activity improved across most sectors amid the further easing of lockdowns across sectors in June 2021, but the current levels are still trailing June 2019 levels, said Emkay Global.

The indices this month are higher than that of last year due to the sharp fall in activity in 2020. However, compared with 2018 and 2019, the IIP index per se is lower meaning, thereby, that there is a long way to go, though we are on the right track.

According to Shrikant Chouhan, Executive Vice-President, Equity Technical Research at Kotak Securities, “Technically, on daily charts, the index has formed a range breakout formation, which suggests a continuation of an uptrend wave in the near future. We are of the view that 16280/16220 would be a key support level for trend-following traders. Above the same, the range breakout formation is likely to continue up to 16400/16475 levels,”

Result calendar

A host of companies such as Aarvee Denims, Allcargo Logistics, Akzo Nobel, Apollo Hospitals Enterprises, Archies, Bajaj Hindusthan, Bayer Crop, Burger King India, Camlin Fine Chemicals, DB Corp, DHFL, Dredging Corporation, GIC-RE, Godrej Industries, Godfrey Phillips, Grasim Industries, Gayatri Projects, Glenmark Pharmaceuticals, Gujarat Mineral Development Corporation, GMR Infrastructure, Godfrey Phillips India, Himatseide, Hindustan Aeronautics, Indraprastha Gas, Inox Wind, Indian Railway Finance Corporation, IL&FS Investment Managers, Inox Wind Energy, Jammu & Kashmir Bank, Jagran Prakashan, KRBL, Madhucon Projects, Maharashtra Seamless, Mawana Sugars, NBCC (India), NHPC, ONGC, Orbit Exports, Orchid Pharma, Parsvnath, Petronet LNG, Raj TV, SEAMEC, Sintex Industries, SpiceJet, Suven Pharmaceuticals, Sun TV Network, Suzlon Energy, Tide Water Oil (INDIA), Ucal Fuel Systems, Uttam Galva Steels, Visa Steel, Vivimed Labs and ZEE Learn will announce their results on August 13.

Published on August 13, 2021

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