InvestorQ : What is your stock market trading view for Monday 07 June?
vaishnavi mhatre made post

What is your stock market trading view for Monday 07 June?

diksha shah answered.
2 years ago

Markets may have closed in the negative on Friday but the correction was rather mild. While banking stocks did see some correction on Friday, sectors like metals and cement continued to be in the limelight. For the week, the mid-cap index was up 4% against 1.6% for the large caps, clearly showing that the interest in mid-caps was back.

With a robust monetary policy announcement on Friday and the sugar thrust, here are two sets of stocks to focus on effective from 07 June. Hotel stocks are likely to be a sentimental beneficiary of the new liberal funding window worth Rs.15,000 crore that RBI announced for contact intensive sectors. Sugar will, of course, gain from the positive ethanol action.

FPI action was favourable on Friday with the foreign investors buying Rs.1,499 crore of equities net, even as domestic institutions sold Rs.1,175 crore of equities. FPIs have now infused Rs.8,000 crore in the first week of June 2021 and it does look like there has been a turnaround in the FPI approach since the middle of May.

Global cues continue to be favourable. There was a strong rebound in the NASDAQ and the Dow as most of the IT stocks welcomed the 15% mandatory minimum tax likely to be proposed by the G-7 nations. While the European stocks were also in the positive, the domestic benchmark SGX Nifty is up 60 bps in early trades.