InvestorQ : What is your view on the stock markets for the 06th of September 2022?
manisha Kolvenkar made post

What is your view on the stock markets for the 06th of September 2022?

diksha shah answered.
4 weeks ago

On Monday the 05th of September, the Nifty closed with gains of 126 points, which is rather gratifying despite the global markets being under pressure over Fed hawkishness. It was the metal stocks that led the rally after China hinted at that more monetary looseness would now be required to revive growth amidst a weakening Yuan.

The breadth of market as indicated by the advance decline ratio or the A/D ratio market was favourable at 35:15 for the Nifty stocks. The metal stocks held up quite admirably on positive China cues. NTPC has been the one PSU stock which has been consistently gaining value with most of its alternate power plans gradually falling into place.

Foreign investors net sold equities of Rs.812 crore as domestic funds bought stocks worth Rs.534 crore on Monday. FPIs have been ambivalent in September after the infusion of $6.4 billion into India in August 2022. On Monday, the US markets were shut on account of Labour Day holiday. Europe came under pressure but the SGX Nifty is trading 26 bps higher in early trades on Tuesday.

There are no legitimate opening cues for the market with the US markets being closed. Hence, the direction is likely to be set in the second half after the Dow futures start trading. For the month of September, the focus is largely likely to be on the mid-cap and the large cap stocks while large cap PSUs like Coal India and NTPC could be the big large cap stories.