What a volatile week, with multiple ups and downs within the past few trading sessions. Even though bulls wanted to summit the previous all-time high, profit booking set it at around 18,750 level, which led the index to drop by around 150 points. On a weekly basis, the Nifty was slightly higher with a gain of 0.18%, whereas the Nifty 500 was higher with a gain of 0.49%.
Although the trading range is getting steeper, the Nifty is holding up nicely, and looks like it might be getting ready for a bigger move on any side.
FMCG stocks witnessed some selling pressure as Shaktikanta Das expressed concerns over the prices of major commodities used in FMCG products, such as sugar, rice, crude oil, etc., further connecting it to the El Nino effect. Looking at the favourable inflation numbers, the RBI kept the REPO unchanged rate at 6.5%. This also affected investors negatively, who had a slightly optimistic view of inflation.
Some rail stocks, especially Kerex Microsystems and HBL Power Systems, were in focus as the government plans to adopt the Kavach systems on more trains after the horrific train crash in Odisha last week.
Leaders & Laggards
Although most sectors ended the week in the red, PSE, Infra, and Energy closed in the green. On the contrary, IT, FMCG, and Media were beaten down.
Talking about models, Quick Short and High Fiver were two of the top-performing models for the week, with a return of 2.41% and 2.37%, respectively.
On the contrary, Nifty Rider and BTST were two of the underperforming models with a negative return of 0.58% and 1.85 respectively.
HAL, or Hindustan Aeronautics Ltd, was the top performer for the first week of June. The company, among the world's oldest and largest aerospace and defense manufacturers, returned 19.28% which is part of the Alpha Ally model.
TWL, or Titagarh Wagons Ltd, returned 14.34% for the first week of June. The company manufacturers of rail wagons and parts saw a jump in share price to a new 52-week high as the company proposed a fresh fundraiser for further development.
M&MFIN, or Mahindra and Mahindra Finance, which is among India's top tractor financers, ended the week on a negative return of -4.53%. The stock was a part of the Alpha Ally model.
KRBL, or KRBL Limited, is the world’s largest rice miller, which is also known for its famous brand ‘India Gate’, ended the week with a -4.18%. The stock was also a part of the Alpha Ally model.
Reads on the Internet :
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After the government announced the withdrawal of the Rs 2,000 rupee notes on May 23rd, nearly half of the notes in circulation are reported to be already back in the system. Find out which form they are coming back in.
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Once known for diamonds, Gujrat is now home to over 2,530 startups, out of which 164 are SaaS-based. Some common names include Dhiwise, Trezix, Ezee, VideoSDK and Wishbook, which have collectively raised nearly $224 million.
Meanwhile, monsoons are just around the corner, keep your raincoats on for the rains and, hopefully, the profits that may rain down along with it.