Crude goes to $75, yet market not giving way to bearishness. Election uncertainties have cast their shadow on the market which is holding bullish bias. When negative news is not giving an impact, then the market is waiting for positive news to trigger the move. Pharma sector continues to be the leader followed by metals. Metals might not hold strength, Pharma likely to lead. Auto’s take a back seat with Maruti giving negative results and also announcing their shutting down of diesel car sales. TVS Motors & Hero Motors which showed strength caved in. Only Tata Motors is strong and it has reasons for it, even it gives a thumbs up to mutual funds holding the stock. MF returns are yet to catch up with the market moves as the broad market is still in the waiting to move up. Now it is time for the large-cap segment to rally, that is what happens before every election. Next to follow will be Mid & Small Caps.
Election euphoria made our benchmarks break into new territory. SENSEX moved past 40K and NIFTY crossed 12K for the first time. Though this happened intraday as BJP gets a clear number which brought clarity that aggressive reforms will continue. As the election news becomes a non-event very soon after...
As the nation goes to polls, markets get into consolidation. Expected correction is not steep, which means the next upside is going to be strong. Along with Cement & PSB’s, Auto & Pharma have become leaders for the 2019 market rally.