Representational Pic
Representational Pic

Buddha Purnima 2019 is here!

This momentous day reminds us of the famous quote from Siddhartha Gautama, “When the student is ready, the teacher will appear”

Simple, yet so profound. It is a fact that a teacher is always ready to teach. Teachers do come in many forms: Friends, elders, neighbours, backyard birds — stock markets too.

Yes, our stock markets too are one of the best life teachers, as they teach us lessons that can be applied to our everyday lives, like:

• Art of decision making: Every trade in stock markets has an uncertain outcome.
• It teaches you to thrive in the midst of uncertainty.
• It teaches us to be disciplined.
• It teaches us how to look for opportunities and how to pursue them.
• A decent time spent in trading/investing in markets leads you to get a feel for situations that you should be aggressive on, while contrarian setups are better if traded with more caution.
• Most importantly, stock markets teach us to have control over emotions especially impulsivity.

We firmly believe, Dalal Street is inspiring hope amongst all of us, and most importantly igniting the imagination to make it big!

Lastly this is a way of life where the teacher is creating many teachers. Makes sense to make most of it by pushing away the darkness of ignorance, and herald enlightenment for all the market participants.

Heartiest Greetings on this day. Happy Buddha Jayanti!!

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The Week That Was:

Sensex: 37,931.

Amidst volatility, the benchmark Sensex gained 1.25% in last week’s trade to close at 37,931. The positive takeaway was that the rebound was despite headwinds like:

1. Selling intensifying from FIIs camp. In the month of May, as of now, the FIIs have pulled out Rs 9,627 crore.

2. Oil prices spiking in last week’s trade as investors primarily focused on percolating Middle East tensions. Well, if the situation worsens then we could easily see oil prices rise to $75 a barel from here.

Net-net, it was bullish for the Sensex as the benchmark bounced off from week’s opening lows cutting its early losses and ending the week on a positive note. The key positive catalysts were:

1. Dalal Street had a strong run of gains for Thursday & Friday on hopes of favorable Exit Poll results which will trickle in on May 19 (Sunday).

2. Short covering ahead of Exit Polls outcome on Sunday, 19th May 2019.

3. The big positive catalyst came from some section of media reports which suggests that Federal Reserve may cut rates again.

4. Sentiments were seen rising following positive signals from both China and President Trump about efforts to reach a trade deal. President Donald latest statements said that it should be clear in “three or four weeks” if a U.S. delegation’s recent trip to China to discuss trade was successful.

5. Index stocks like Bajaj Auto & Bajaj Finance posted stellar Q4 earnings.

The Sensex ended in green in 3 out 5 trading sessions. The BSE MidCap and the BSE SmallCap index ended lower on weekly basis, down -0.60% and -1.55% respectively.

Amongst Sectoral indices in last week’s trade, BSE Consumer Index, BSE FMCG Index & BSE Bankex Index were up 1.9%, 1.7% & 1.5% respectively whereas BSE Healthcare Index, BSE Metal Index & BSE Power Index were down 4.3%, 2.3% & 1.5% respectively

Amongst the BSE-30 stocks, BAJAJ FINANCE, KOTAKBANK, and HEROMOTO were up 13%, 4.7% & 4.6% respectively. The top three losers of the week were YES BANK, TATAMOTORS DVR and SUN PHARMA, down 18%, 7% and 6.8% respectively.

Meanwhile, Wall Street ended Friday’s trade on a sour note following a report that U.S. trade talks with China are at an impasse. Investors continued to worry about possible consequences of President Trump’s executive order aimed at banning Huawei equipment from U.S. networks

Interestingly, year -to-date, Dow Jones is up 10.44% and Nasdaq up 17.8%.

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