Current Market Scenario : Indian Equity Analysis

The Indian markets are getting devalued every day. The current scenario is even worse if we look at the SGX Nifty trend. The SGX Nifty has given a close of 17300. This came after the Nifty50 closed at 17475 levels and Sensex closed at 58338 levels. Overall if we watch out then the entire world is into the slightest range of bear zone. Major indices like Nasdaq, Shanghai, Nikkei etc are into red zones. Overall markets are panicking due to the Sri Lankan Crisis and Covid XE Variant Spread. The virus is spreading out very quickly which has even caused China to shut down its major 3 provinces. 

However India is facing multiple problems together. Sri Lanka has defaulted on its payments which has made the trade with Sri Lanka even more difficult now. Alongside this the Pakistan Political instability is also pushing for unrest among FII to invest into India. Also there was a short holiday period for the Indian traders from Thursday till Sunday which encouraged the Investors to temporarily invest their money outside of Indian markets.

The trend among Indian equity is changing currently. If we look closely then the Indian indices are not performing well due to underperformance from Major Nifty 50 stocks and Bank NIfty stocks. Lately the market is driven by the dream run from multiple good companies under midcap and small cap branches. 

Current Trend in Equities

If we look closely then the major stocks such as TCS, Reliance etc are not performing well. However the ones who are performing are the Adani conglomerate and small cap, mid cap stocks. 

Among the performing group one should definitely place Renuka Sugar as one of the best stocks lately. The company has been under the rumours of takeover from Adani Group. However the news can be correct or not but it has given the share prices of Renuka Sugar an unimaginable boost. The stock is up by almost 50 to 60% in the last month. 

Another such stock can be termed as Paytm which has given 30% return in the last 2 weeks itself. The reason was bottoming out. The share was constantly unde the bear zone after its IPO open price of 2150 Rs. Due to its poor performance and allegations from RBI for data leak the stock lost a great chunk of investments and momentum. This resulted in it making an all time low of 521 Rs. With a reversal in momentum the stock has gained more than 30% in value. It is currently trading at 692 Rs per share on NSE and BSE. 

Yes bank is just another big story which cannot be ignored this month. The stock has crossed its biggest hurdle of 13.8 Rs per share since the last few months. The stock rushed to make a high around 15.8 Rs. However currently its valuation has come down to 14.55 Rs per share. The high caused the share price to rise by almost 20% in one single day.

Adani Group

The Adani group is one of the most valued groups currently. The Adani Green share has entered the premium shares list and is ranking at 8th among the most valued companies in India. The share has left Bajaj Finance and HDFC behind. Every share under Adani Group’s wings has given superb returns in the last 2 months. The major ones from the list would be Adani Wilmar and Adani Power. Both these shares have been absolute winners. 

The share price of Adani Wilmar is currently above 650 Rs and its listing price was just 230 Rs. Thus the share has given more than 400 Rs as a return to its investors. On the other hand, Adani Power’s share price has increased by 130 Rs in the last 1.5 months. The share was trading around 100 Rs and gained more than 130% return in the last 2 months. Similar stories are aligned with its other shares such as Adani Green, Adani Transmission and Adani Enterprise. Adani Port also looks highly potential in the current pricing zone. One can expect its prices to rise in short tenure.

Market Ahead

The Indian markets can be expected to be bullish but it can take a while for the momentum to get shafted back on bull run tracks. The reversal from 16000 levels gave a great run to Nifty50. It straightaway rose for almost 2000 points in successive sessions. Due to the international crisis the prices of stocks are getting hit and this has caused a major value loss to Indian indices. However, coming forward one can definitely expect the Nifty50 to cross its 18600 levels in the next 2 to 3 months. It can be a question whether the target for Nifty50 of 20000 Levels can be achieved before the year ends or not. 

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