Has the Market seen its second correction for this year?

There was a lot of tension as to how the market would react to the rising rift between RBI and Government. On account of positive global cues such as gains in Asian peers and easing trade war between US and China, lowering oil prices, appreciation of the rupee, and companies quarterly results, this week saw the Nifty rise by 5.2 % putting on 523 points. Sensex, on the other hand, put up 1662 points and rose by 4 %.

The market had shown a bearish belt hold pattern yesterday and signaled a neutral stance for today. The market, while posting a robust rally, had a gap up opening with Nifty crossing the 10450 mark and gaining 1.7 % in today’s trading session. HDFC was a buzzing stock during morning trade as investors cheered their quarterly results. The company reported a 24.7 % profit growth year-on-year driven by the stake sale of their AMC business.

Stocks of OMC like BPCL, Indian Oil and HPCL rose on account of a fall in prices of brent crude oil internationally. It hit $72.63 per barrel, which was a seven month low. This and dollar-selling by exporters and banks, in turn, helped the rupee appreciate against the dollar and closed at 1$ = 72.5 Rs.

Tech stocks like Infosys and Wipro took a beating in afternoon trade as Donald Trump introduced stringent provisions to the H1-B labor application process. The biggest gainers today were Maruti Suzuki, BPCL, Tata motors, and IndusInd Bank. The biggest losers today were the IT majors.

Has the current correction for Indian market finished? This was the second such correction this year following the Feb-March correction which then led the Indices to reach their all-time highs.

The “Muhurut” Trading to be conducted between 1700 hours and 1930 hours on November 7th.