InvestorQ : What is your market view for the 12th of January?
swati Bakhda made post

What is your market view for the 12th of January?

diksha shah answered.
12 months ago

The trading on 11 January was all about IT stocks in the market. After the fantastic results of TCS in the previous week, there has been a virtual re-rating of IT stocks in the Indian markets and that was the major driver of the markets on Monday. However, many of the old economies did remain under pressure.

The big story on Monday was Tata Motors. It made a surprising spurt in price after news that its sales numbers had picked up sharply came out. In addition, there was also heavy speculation in the market that Tata Motors could be marketing Tesla cars in the lucrative Indian market. However, neither Tata Motors nor Tesla have confirmed this piece.

Foreign buying not only continued in January but also picked up steam in the last two days. FPIs were net buyers to the tune of Rs3139 crore on Monday even as DFIs sold Rs.2610 crore on Monday. Indian markets have already seen an infusion of Rs.9200 crore in 2 trading days with the MTD FII flows in Jan-21 getting closer to the Rs.13,000 crore mark already.

The US markets fell more than 1% a profit booking on the Dow and the NASDAQ set in. This was also true of Europe were concerns over the second round of pandemic are still high. Global markets were worried about the spike in US bond yields. In India the RBI has made an attempt to push up yields at the short end through heavy reverse repos of Rs.2 trillion.

Finally, let me offer you a word of caution in the markets at these levels. There is a degree of monetary tightening that is visible by central banks after the indices have scaled heights on the back of rampant speculation. In the US, bond yields are well above 1.1% and RBI is sucking out Rs.2 trillion via reverse repos. That is not great news for a bull rally.