Unlock 1.0: An Outlook of the Stock Market as India Reopens
The COVID-19 pandemic not only threw the financial market from its proposed path but also reshaped the landscape of the Indian economy. There is no denying that this pandemic created a steep rise and fall of the stock market. The scenario is same across the global market.
During the lockdown period, a research conducted by stock market experts at Shyam Advisory showed some stocks like AU Small Finance Bank, Bajaj Finance, Bajaj Finserv Ltd, Chennai Petroleum Corporation, Sunteck Realty, etc touched very low. However, there is some good news also. By following the expert stock tips some investors, who invested in the stocks of ICICI Bank, Axis Bank, Grasim Inds, were able to earn profits. In the Nifty 50 Index, the stocks of these companies remained on the top.
The announcement of Unlock 1.0 by the central government brought some ray of hope for the stock market, especially for the traders and investors. This announcement might put some domestic stocks on fire. But the real impact of such a decision for the stock could be witnessed only after a few days.
Why Such a Decision?
Due to COVID-19, several restrictions were placed on business and trade. This, in turn, led to India’s low economic growth. Leading industrialists repeatedly requested to lift the lockdown and reopen the Indian economy so that it doesn’t affect their business.
The decision to go for Unlock 1.0 has come amidst a stable growth rate in the number of COVID cases, a steep rise in the number of recovered patients, and a low fatality rate. The government hopes to breathe some life into the macabre economy with the first-phase of unlock.
After analyzing the market, market experts are certain that the stock market will witness slow growth. Some stocks may shine; some may not. Hence, it’s imperative to follow stock options tips or Nifty option tips with caution.
Even market advisories of Shyam Advisory are pointing out that the Indian stocks won’t be able to recover from the loss very soon. Market strategists are assuming that the BSE Sensex Index benchmark might reach this year’s low figure of 25,638.90 again by September end. However, at the same time, they are also hopeful that this critical period will pass, just like the global crisis of 2007.
Before the nationwide lockdown was announced, the index slightly recovered from the record low. But the global pandemic changed the entire scenario. The stock market again went on a roller coaster ride. As there is a high chance of another wave of infection from Coronavirus, the market is expected to go through a slow recovery process.
In fact, financial planners are hoping that once the restrictions are eased, the economy will recover and the stocks would recoup from their losses.
Unlock 1.0: Is It A Positive Step towards the Economy?
Is Unlock 1.0 a positive step for the Indian economy? This question might have surfaced your mind multiple times. Well, taking into consideration the Indian market view, the Unlock 1.0 decision might be a good one for investors and traders.
The two-months of lockdown brought the economy to a standstill. Experts are hopeful that the economy would revive soon.
Sectors, like retail, food, telecom, and consumer durables might see a rebound in sales. For instance, the demand for coolers and ACs is already on the rise due to the hot weather condition in the northern part of the nation. This, in turn, increased the stock prices of Voltas and Symphony.
According to market analysts working with Shyam Advisory, investors should look forward to investing in infrastructure-related stocks during the Unlock 1.0. Why? The reason is simple. When it comes to Nifty option tips, investors would be greatly benefited from the short-to-mid term plans offered by the infrastructure-related stocks.
Some stocks which are worth the investment are – cement, capital goods, and metals. They offer good returns. Stocks of L&T, JSW Steel, or UltraTech Cement come with a good valuation. The risks, as well as the reward factor, would be in favor of the investors.
Stock tips could be very helpful to investors in Unlock 1.0. They can know the latest stock price or which stocks are suitable for Intraday trade. With the help of bank nifty tips, investors can be kept aware of the volatility in the equity market.
Under the present scenario, it’s expected that the price of the stocks would go downhill and reach close to fair value. So following the stock market news and tips closely is important.
Market analysts pointed out that it’s advisable to invest in stocks after carefully going through the Nifty options tips or stock options tips. Investors shouldn’t hastily sell any stock; rather, they should wait for the appropriate moment to sell it.
Market on the Positive Side
Since the government took steps to ease the countrywide lockdown from 1st June 2020, the benchmark indices showed an increase of 3%. This offered some hope for economic revival. After months of gloom, the silver lining for the stock market were the investments made by overseas investors.
In fact, on the fourth consecutive day of June 2020, the Sensex showed an increase by 879 points and closed at 33,303; whereas Nifty showed an increase by 246 points and closed at 9,826. Studies showed that overseas investors are the main buyers of domestic equities. Foreign Portfolio Investors (FPIs) invested in shared worth Rs 1575 crore.
However, market analysts and financial planners like Shyam Advisory feel that investors need to be very careful and take into consideration the global situation, especially the tension brewing between Washington and Beijing; as well as the social unrest in the United States.
The gradual easing of the lockdown restrictions would hopefully augment the economic situation. For instance, the opening of malls, restaurants, and other hospitality services would be a good sign for the shares of the retail companies. Similarly, as private vehicles would be hitting back the roads in most of the Indian states, the demand for fuel would be on the rise. So the stocks of the fuel companies would be a wise investment.
During the first week of June 2020, some of the top gainers were Bajaj Finance, Tata Steel, and Titan. However, as of 10th June, the share market of Titan faced a slight decline. After the CLSA sell rating on the stock, the share fell by a percent. So understanding the market scenario with the guidance of professional traders and advisors is very important for investors. Professional advisors would give valuable tips only after studying the market.
Trending Stocks on 10th June
On Wednesday, financial experts say that the S&P BSE Sensex floated around the 34,205 level mark and it went up by 150 points; whereas Nifty 50 Index hovered around 10,080 level mark.
The traders of Dalal Street considered it as a good sign and offered valuable advice to the potential investors. Some stocks which are expected to create a buzz in the trade market are:
Tata Power Company
The stock market scenario on 10th June 2020, till 11.56 AM (IST) was something like this. The shares of Tata Power Company Ltd gained 0.47% and the stock of the company quoted a 52-week high and a 52-week low of Rs 74.05 and Rs 27.0. Till 11.56 AM (IST) the total traded volume was Rs 2.11 crore. Following the stock options tips, many investors shelled out a high price for this stock as they are expecting a good growth of the company in the future.
Similarly, the Sensex showed a sign of upward movement during Wednesday’s trading session; realty shares showed signs of profit. As expected by market experts, the share of Phoenix Mills was on the rise. It went up by 3.61% on 10th June 2020.
Punjab National Bank
The shares of Punjab National Bank traded 0.94% on 10th June and went up by Rs 32.1 till 11.51 AM (IST). In its previous session, the stock of Punjab National Bank settled at Rs 31.8.
Kotak Mahindra Bank
The shares of Kotak Mahindra Bank rose 3% to reach Rs 1334 on the NSE. Investing in the stocks would be a great idea for investors looking for good returns from the market. Going by the performance index, Kotak Mahindra Bank is going to stay ahead. It has faced tremendous growth over the past few years. Hence, picking some stocks of this bank would be a wise idea for the investors.
The stock prices of JM Financial reached an Intraday high of Rs 74.80, as it gained 5.5%. With the launch of QIP (Qualified Institutional Placement) for Rs 66.72 per share, it seems to be a great option for investment during Unlock 1.0. For more Intraday tips on this stock, trade market professionals could be of help.
Adani Green Energy
Presently, investors can look forward to investing in the stocks of the Adani Green Energy Group. The company holds a great future since it partnered with French energy giant Total SA. Many other investors are showing interest to partner with the Adani Group for the renewable energy business. The company will go a long way; hence, investing in stocks would be a great idea.
Recently, this telecom major released a press statement stating that they have acquired a 6.3% stake in Bangladesh’s telecom operator Robi Axiata. They will have a long way to go in the present market since the Unlock. Thereby, those who are planning to invest in the stocks of this telecom giant would gain.
Stocks That Faced a Downfall
On 10th June 2020, the stocks of Godrej Consumer Products Ltd dropped by 4.4% to Rs 630.20. Around 12.20 PM (IST), the share price dropped from 3.77% to Rs 634.50/share on the NSE.
According to the market experts which would gain from the lockdown relaxation are Jubilant FoodWorks, Aditya Birla Fashion, Brigade Enterprises, and more. After all, there is an unusual demand for apparel and shoes. For this reason, trading with Bata stocks would be an ideal option.
Market analysts are highly recommending investing in the stocks of Hindustan Unilever, Cipla, Dabur, Britannia, and Biocon. They are the big players in the Indian market and would show signs of improved growth.
Investors, who are planning to invest in the stock market post-lockdown, should tread the stock market carefully. If required, they shouldn’t hesitate to take professional advice regarding the most suitable stocks and related stock tips. Obviously, they can follow some trading sites for intraday tips, but taking the help of professional market analysts is the need of the hour.