Daily Market Wrap - July 16, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian markets ended almost flat on July 16 even as interest returned to largecaps and volumes expanded. After making new intra day highs, mixed Asian and European markets weighed on the local markets. IT stocks came under profit booking despite encouraging numbers from Infosys and Wipro. Realty, Metals and Telecom stocks gained. New age companies like IRCTC, BSE, ICICI Sec, CDSL, Angel Broking etc attracted fresh buying as investors were willing to bet on their long term growth trajectory.
Zomato's IPO got oversubscribed comfortably on the last day.
Nifty has found it difficult to breach 16000. Sectoral rotation could continue while select stocks could attract buying based on news and developments. On a weekly basis, Nifty has ended with a 1.49% gain after two weeks of losses. The coming week will witness more Q1 results (key among them being ACC, HCL Tech, Asian Paints, Bajaj Finance, Bajaj Auto, HUL, JSW Steel, ICICI Bank, ITC) and the stocks could react to these announcements. The indices could continue to edge upwards in the coming week which is a truncated week with a holiday on Wednesday.
Retail investors could do a bit of reshuffling from the smallcaps into mid and largecaps.