Time to invest but use cash in phased manner ahead of elections

Bulls reclaimed lost glory on Friday as the S&P BSE Sensex rallied by over 150 points after two days of decline but failed to close above 39,000, while the Nifty50 reclaimed 11,650 levels.

The final tally – the S&P BSE Sensex closed 177 points higher at 38,862 while the Nifty50 rose 67 points to close at 11,665.

Both Sensex & Nifty eke record highs this week, ending with gains of over 0.4 percent each. The S&P BSE Sensex gained 0.49 percent while the Nifty50 gained 0.36 percent for the week ended April 5.

In terms of sectors, Nifty Bank slipped 1.1 percent for the week ended April 5. Remember, it hit a record high 30,649 on April 1, Monday. The Nifty FMCG index slipped 1.5 percent, followed by the Energy index which was down 1.9 percent.

Among the gainers, Nifty Auto index rose 2.7 percent followed by Nifty Metal index which was up 3 percent in the last 5 trading sessions.

Markets may consolidate further in the coming week as we kickstart earnings for India Inc. for the quarter ended March and election outcome next month.

Experts advise investors not to burn their fire power in one go but instead use the cash to get into markets on a dip, or in other words, deploy cash in a phased manner.

“Market is showing some nervousness after rallying over 1000 points on the Nifty. The price set up remain fundamentally strong, but there is some nervousness as we hit fresh all-time highs. Fundamentally, the latest forecast on monsoon made valid ground for nervousness and RBI also talked about the risk to monsoon. All the high-frequency data such as auto numbers are hinting towards a possibility of a slowdown,” Shailendra Kumar Chief Investment Officer, Narnolia Financial Advisors told Moneycontrol.

“But, there are still segments of the economy particularly banking which will keep attracting buyers. Investors can start investing in a phased manner ahead of elections, as well as there is some global uncertainty as well. But, it is not a bad time to invest in India markets,” he said.

Stocks in news:

Jyothy Laboratories shares gained 6 percent after global brokerage firm Macquarie has initiated coverage on the stock with an outperform rating.

Godrej Properties rose 7 percent after the company increased its stake in Wonder Space Properties and addition of a new residential project in Navi Mumbai.

Shares of Cipla rose more than 2 percent after it received establishment inspection report (EIR) from USFDA for its Goa facility indicating closure of the inspection.

Balrampur Chini Mills gained 5 percent after the board approved buyback of worth Rs 147.67 crore at Rs 175 per share.

Global Updates:

Asian markets ended with marginal gains with Nikkei rose 0.38% at 21,807.50 and Kospi added 0.14% at 2,209.61.

The stock markets in China and Hong Kong were closed today.

European markets are mixed as there is no any meaningful conclusions from US-China trade talks.