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Indian market monthly review: How did Indian stock market react in June-21?

Indian market monthly review: How did Indian stock market react in June-21?

Last updated: 07 Jul, 2021 | 04:01 pm

Indian market monthly review: How did Indian stock market react in June-21?

After a huge 6.5% gain in the previous month of May, the Nifty took a slight breather in the first week but gave a positive 0.9% return in the month. Small Caps and MidCap indices also had a good month in terms of gains in the month.

Positive Market moving News during the month were

  • Upbeat Q4 earnings from in financials, energy and metals
  • Fall in Covid-19 cases towards the end of the month (down to around 40,000 cases a day)
  • Supportive monetary policy and stimulus

Negative Market moving News during the month were

  • Mixed signals: Poor show in PMI data
  • Downward revisions in GDP estimates
  • CPI inflation outside tolerance band: RBI may have to raise interest rates

What’s cooking in Nifty stocks?

  • Nifty 50 stocks including TCPL, Infosys, Titan, Tech Mahindra and Bajaj Finance were the top gainers for the month, gaining up to 14%. A lot of factors including foreign brokerage upgrades, new product launches, new deals etc lent support to the rally in these stocks.  
  • Adani Ports, ITC, Kotak, Hindalco and ICICI Bank were the top losers, closing up to 9% lower in the month

Outlook

Next few months will be particularly action-packed with the below key events:

  • Big bang IPOs lined up in July
  • Q1FY22 earnings, GDP figures from previous quarter
  • Inflation numbers
  • RBI Monetary Policy: Central bank’s stance in RBI MPC to counter inflation and increase in yields

Concerns over the new variants and the possibility of a third wave of Covid in India continue to remain a major headwind. Economic activities might take a hit due to partial lockdowns, affecting the stock market. After scaling fresh records, the markets may take a breather due to lack of fresh triggers.

IND Recommendation

  • Invest in equities in a staggered manner. Stagger your lump sum equity investments into smaller fractions before deploying into this market
  • Stick to large caps and index stocks that are best suited to navigate the volatility.
  • Keep your SIP’s running
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