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Indian Markets Trade in the Green
Mon, 20 Jun 11:30 am

After opening the day on a flat note, the Indian stock markets registered gains and went on to trade in the green. Sectoral indices are trading on a mixed note with stocks from the realty and IT sectors leading the gains. Banking stocks are trading in the red.

The BSE Sensex is trading up by 110 points (up 0.4%) and the NSE Nifty is trading up by 28 points (up 0.4%). The BSE Mid Cap index is trading flat, while the BSE Small Cap index is trading up by 0.2%. The rupee is trading at 67.37 to the US$.

As per an article in the Economic Times, the 'British Remains' camp has taken a slight lead in most polls ahead of Thursday's defining vote. This is seen as the death of a British Member of Parliament, who was shot dead last week, lowered the 'Brexit' (British exit) bets.

Most polls and bookies are showing a decent chance that the Brits will remain in the European Union (EU) and set the much volatile markets on a rally.

All eyes are now on the UK EU referendum that is scheduled on 23rd June. On June 23, UK will vote on whether to remain in the 28-nation European Union (EU) or to leave. Britain's exit from the EU (Brexit) is in the news globally as it could have major implications for the international financial market and exchange rates. A recent entry in Vivek Kaul's Diary gives a bird's eye view of Brexit and explains how the European Union has fed into the Brexit sentiment.

If Britain vote to leave the EU, one can expect turmoil in the global financial markets. UK PM David Cameron has already warned of a "probable recession" if the UK votes on leaving the EU. The volatility will also force a safe-haven flight to the dollar assets and weigh on the rupee which is already facing selling pressure on the back of Raghuram Rajan's exit.

Speaking of volatility, our recent edition of The Equitymaster Research Digest explains how short-term trading, when coupled with long-term value investing, can be a great way to protect your portfolio from the next crash (subscription required).

Moving on to the news from <>infrastructure space, Prime Minister Narendra Modi has set targets for key ministries to step up infrastructure investment and speed up execution of infrastructure projects. The targets set are said to be delivered by the end of the financial year in order to effect visible change on ground.

Reportedly, targets for infrastructure sectors have been approved by the Prime Minister and communicated to ministries. These will now be regularly monitored by NITI Aayog and reviewed by the Prime Minister himself on a quarterly basis.

The development comes after NITI Aayog made sectoral presentations to Modi last month and highlighted tardiness in many areas. One shall note that NITI Aayog, the apex planning body in the country, recently gave a reform roadmap for state-owned units. It recommended winding up of 26 loss making public sector units (PSUs) as soon as possible. Further, it also suggested searching for strategic buyers for some companies.

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