Indices Report Healthy Escalation
Auto sales figures for the month of June 2021 evidenced signs of recovery in retail segments across the board as several states eased lockdown restrictions.
With a constant tussle between the bulls and bears, the recent fortnight was a tumultuous rollercoaster ride for the domestic markets. The bears eventually emerged victorious as frontline indices S & P BSE Sensex and Nifty lost 1.02 per cent and 1.08 per cent, respectively, during the fortnight. The Mid-Cap and Small-Cap indices outperformed the broader benchmarks indices by climbing 1.17 per cent and 3.51 per cent, respectively. The Auto index slipped 2.98 per cent as global crude oil prices touched six-year highs during the fortnight and petrol prices in several Tier I and Tier II cities skyrocketed past Rs 105 per litre.
Auto sales figures for the month of June 2021 evidenced signs of recovery in retail segments across the board as several states eased lockdown restrictions. However, the outlook for July 2021 appears murky as recent price hikes by OEMs on account of rising raw material costs coupled with high fuel costs are expected to impair consumer sentiment. The BSE Bankex ended the fortnight at 39,668.64 points, dipping 0.89 per cent. FMCG index escalated 0.84 per cent. Domestic consumer goods consumption jumped by a mega 40 per cent in June, covering up for the deficit witnessed in May due to lockdowns and other restrictions. As companies seem confident to report robust Q1FY22 earnings, outlook for the sector is positive.
Conducive market conditions and favourable changes in consumer sentiments improve the future outlook for realty sector.
Strong demand, healthy margins, improving profitability and deleveraging by major players helped the Metal index gain 1.47 per cent and outperform benchmark indices. Power and IT indices tumbled by 3.31 per cent and 1.44 per cent, while Healthcare index leaped up by 3.09 per cent. The Realty index stole the limelight of the show, shooting up by massive 5.50 per cent during the fortnight. Big players saw a pickup in pre-sale numbers and decline in unsold inventory in June 2021. Conducive market conditions and favourable changes in consumer sentiments improve the future outlook for realty sector. Trading data shows that FIIs were net sellers to the tune of Rs 2,152.16 crore while DIIs were net buyers to the tune of Rs 9,417.95 crore during the fortnight.
