Here's a quick wrap-up of the highlights this week.
Banking stocks end the week on a high
- Markets showed a healthy uptrend this week and gained 3.3%. The rise was largely powered by a sharp rally in banks. The Nifty Bank index rose 7.5% this week. The announcement that the bad bank will start from June ’21 and SBI’s strong results were sentiment boosters.
- The volatility index, India VIX, cooled off further and dropped around 6% this week, indicating traders expect lower volatility in the coming days.
Realty sector on an upswing
- The Nifty Realty index was among the top sectoral gainers this week with a rise of 6.7%. Stocks in the sector saw high investor interest on the back of comments from top developers.
- The management of recently listed Macrotech Developers expects that there is going to be a multiyear upcycle in the housing sector. On one side the demand is driven by buyer’s need for better and bigger homes, especially after Covid. On the other, the industry is seeing consolidation in favour of few tier-1 developers who have access to credit from lenders. Oberoi Realty also believes that the market share of established developers will continue to grow.
WPI at 11-year high
- The wholesale price inflation or the WPI rose to an almost 11-year high in April triggered by a sharp rise in prices of metals, fuel and power.
- WPI stood at 10.4% in April up from 7.3% in March. The street believes that the retail inflation could firm up, albeit with a lag, due to this cost pressure.
Major earnings/results next week
- Monday: Grasim
- Tuesday: Bajaj Electrical | CAMS | Thermax | TTK Prestige
- Wednesday: Berger Paints | Pfizer
- Thursday: Sun Pharma | Eicher Motors | Alkyl Amine | Balrampur Chini
- Friday: 3M | Glenmark
DIY Covid test to be available soon
We may soon be able to test ourselves for Covid at home. Mylab Discovery Solutions, a Pune-based company, is set to launch its do-it-yourself Covid test kit on 1 June. As per the company, its kit can test for positivity within as little as 15 minutes. The test has been approved by the Indian Council of Medical Research (ICMR). However, in case the test shows negative results in symptomatic patients, ICMR recommends an RT-PCR from a testing laboratory.
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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.