While the Sensex and Nifty witnessed heightened volatility in the week gone by, a few bluechip stocks including HDFC, HDFC AMC and IT giant Infosys surged to fresh record high.
While the Sensex and Nifty witnessed heightened volatility in the week gone by, a few bluechip stocks including HDFC, HDFC AMC and IT giant Infosys surged to fresh record high. Notably, the 30-share Sensex lost 1.03% to 38,337 for the week ended July 19 from 38,736 in the last week. Likewise, the broader 50-share Nifty declined 1.15% to 11,419 from 11,552 in the previous week. “The underlying sentiment in the market is negative which is an outcome of multiple factors. The global markets are oscillating at new all-time highs specifically the S&P and Dow while Asian markets were also positive. The domestic cues somehow have not supported the market and that is what is causing the current trend,” Mustafa Nadeem, CEO of Epic Research said.
Amid heightened volatility, bluechip shares including HDFC, HDFC AMC, Infosys, Procter & Gamble and SBI Life Insurance hit a fresh all-time high. Notably, Infosys shares gained 8% in the week to Rs 785.40. Last week on Friday, the firm had reported results in-line with estimates as net profit came in at Rs 3,802 crore; implying a 5.3% jump on-year. The company has increased FY20 revenue growth guidance to 8.5-10 per cent range in constant currency terms. The stock touched a new high of Rs 798.60.
India’s largest housing finance major HDFC achieved a major feat on Thursday, as the firm’s mcap topped the Rs 4 lakh crore mark, even as the shares surged to a fresh record high. HDFC shares hit a new record high of Rs 2,357 on BSE. The shares returned nearly 3% in the week. Interestingly, HDFC AMC shares have been on a rising spree in the recent times, gaining more than 18% for the week. HDFC AMC shares hit a record high of Rs 2,369.50. Yesterday, the scrip closed 6.76% higher at Rs 2,369.50 on BSE. Another bluechip Procter & Gamble Health zoomed nearly 10% in from July 12th. The scrip hit a 52-week of high of Rs 4995. The stock closed 1.5% down at Rs 4,687.40 on Friday.
Sharing his outlook on the stock market going forward, Nadeem noted that the Volatility index has seen a sharp up move which was up almost 6% and coupled with that Nifty has seen a breakdown from a Flag pattern which is a trend continuation pattern. “A bearish flag has marked much lower levels for Index in the coming week. We believe this medium-term correction is here to stay and we may see lower targets of 11250 – 11300 with short term bounces which should be utilized by bears,” he said.