InvestorQ : How do you see the stock market movement on 28th September and why did auto stocks like Maruti and TAMO rise so sharply on Monday?
Dhwani Mehta made post

How do you see the stock market movement on 28th September and why did auto stocks like Maruti and TAMO rise so sharply on Monday?

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diksha shah answered.
3 months ago
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On Monday, the stock market indices were largely insipid to flat at close. However, as you rightly pointed out in your query, auto stocks like Maruti, Tata Motor and M&M were the surprise gainers. The reason is that most of these auto companies are effecting price hikes from October so cost increases will be passed on substantially to the customers.

On Monday, most of the technology stocks came under pressure with some of the major names like HCL Tech and Wipro giving up value. The one area of concern to watch out for is the rising VIX or the volatility index. On Tuesday, the India VIX spiked sharply to above 18 levels and normally, the markets become vulnerable if VIX crosses the 20 mark.

Foreign institutional investors were net sellers on Monday although the selling was fairly subdued at Rs.598 crore in the equity markets. Domestic DFIs were net buyers of Rs.1,398 crore in the equity market. Due to wider interest rate differentials, the debt flows of FPIs have been strong this month and they are more than 70% of net flows.

Global cues are rather mixed on Tuesday. The US markets were mixed with the Dow up 20 bps and the NASDAQ down 52 bps on Monday. The 3 key European markets of FTSE, CAC and DAX were mildly in the positive. In early trades on Tuesday, the benchmark SGX Nifty is trading about 22 bps in the green but global cues could hold the key.

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