Markets & Models
Benchmark Index Nifty50 ended the week with a roaring uprise on Friday.
Nifty50 broke and closed above the psychological number of 18,000, which would have made long-term investors, especially Index investors, very happy.
In line with the broader index, India VIX was one Index that was in red for most of the week and currently closed at a multi-year low of around 11.
The Nifty50 closed higher at 2.50% for the week; meanwhile, the Nifty500 also followed the same trajectory with an upside of 2.51%.
Some sectors that helped the rally included food & beverages, fertilizers, hardware tech and telecom.
On the other side, metals and consumer durables seem to be under some pressure.
Talking about models at Investmint, Alpha Ally and Trending Ten were the best-performing models for the week, with a return of 4.22% and 4.19%, respectively.
While Quick Short, which is a mean reversion model, gave a negative return of 4.22%, followed by Nightcrawler, which ended the week with a negative 0.12% return.
Lastly, Nifty Rider the long-short trend following model, has closed at 4.8% YTD, leading the benchmarks so far.
Leaders & Laggards
For this week, railway stocks were in the limelight as most witnessed a double-digit rise, backed by robust demand and expansion forecasts. Furthermore, the news of the manufacturing of 120 new Vande Bharat trains piqued investors' interest in railway stocks.
Conversely, metals and consumer durable stocks took a backseat after supporting the markets for the previous months. Lower spending on consumer durable goods like refrigerators and televisions could be the result of a slower economy.
IRCON, or Indian Railway Construction International Limited, was the top-performing stock for the month, with a gain of 29.60% for the month of April. The stock also hit a new 52-week high on Thursday, along with other stocks in the same sector. The public sector company specialises in transport infrastructure, particularly when it comes to the railways.
TWL, or Titagarh Wagons Limited, remains on the top leader list, with a total return of 20.59% this month. The increasing demand for railway products and the positive tailwinds of the sector helped with the stock's performance.
VSSL, or Vardaman Special Steels Ltd, on the other hand, was one of the poor performers with a -10.21% return for the month. The company, which is engaged in the manufacture of special steel products, faced headwinds from the metal sector.
GODREJCP, or Godrej Consumer Products Ltd, was next in the laggards list as the stock tumbled by more than 4.5%, making it the biggest loser on the Nifty FMCG index. The stock plummeted after the news came out that it had made a deal to buy Raymond’s FMCG business for Rs 2,825 crores.
In Other News
Months after the Hindenburg report caused havoc on Adani stocks, Vinod Adani stepped down as a director from three companies connected to Adani’s coal mines in Australia. This happened a few days before the Supreme Court formed a committee to investigate the matter.
India signed a deal with Russia to adopt Moscow’s SPFS system for banking payments. This means Indians can pay using UPI and UPI Credit Cards in Russia, and the Russian MIR cards and their FPS systems could be used in India.
Godrej buys Raymond’s FMCG business
Major FMCG player Godrej Consumer purchases Raymond’s FMCG business, along with the trademark of Park Avenue and Kamasutra. All of this for a total of Rs 2,825 crores:
Reliance is stepping on the gas to advance in the OTT game. The latest partnership with Warner Bros for its streaming platform JioCinema will bring popular HBO content to its platform. Some of them include Game of Thrones and the upcoming Harry Potter series.
Tamil Nadu CM puts a hold on the bill to make 12-hour workday legal in factories.
Earlier this week, the Tamil Nadu Assembly passed a bill that allowed 12 hours working days for workers. However, this bill was later put on hold by CM MK Stalin. It raised a lot of questions about jeopardising the ‘basic work hour norms’ for industrial workers.
Lastly, we'll leave you with this wonderful read by Jason Zweig the famed Wall Street Journal journalist where he talks about seven traits of great investors.
Find out what these traits are and maybe they'll help you improve your craft.
It's a long weekend, let’s hope in the coming week the trend in the market continues so that the green in your portfolios can balance the heat outside.
Rest well and see you all back on Friday.