The Wrap🌯 19 Nov 23 | New All Time High?
Your weekly digest of everything important in Indian Stock Market
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Inflation retreats, Stocks rejoice, Bulls take control, market close to all time highs
The major trigger this week was the soft(er) inflation numbers from US followed by UK and rest of the world. Inflation is in retreat driven by lower energy prices and while global tensions abound, optimists and bulls are in control of the market.
Oil is now below $80 per barrel mark, Dollar Index posted one of the worst single day declines (lower dollar index is good for the market) and even US 10Y bond yields are below 4.5%.
Retreat in inflation is also showing up in company earnings, with majority of companies reporting an increase or revert to their long term margin trajectory.
Overall it was a good week for the world markets and a great week for Indian markets.
IT sector led the rally followed by Real Estate and Autos. The great part of this market is there isn’t any one sector leading the rally, there are several which always indicates a healthy bull sentiment.
Some sectors are well ahead of in their momentum curve (Railways, Autos), some have started their momentum recently (Real Estate, Cement, Building and Infra ancillaries) while others are showing early signs of initial momentum (API companies).
Market breadth wise we are trading close to 90th percentile range. There are definitely pockets of overvaluation in the market and its hard to hunt for cheap bargains but there is plenty of opportunity available as well.
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