nifty: Market Watch: How should retail players approach FMCG stocks? | The Economic Times Podcast

– Nitin Gadkari urges companies to take action on Electric Vehicle fires
– Finance Minister urged to let NRIs invest in stocks
– Russia, India in talks to restart coking coal
– Turkish company eyes Air India ground handling unit
– Government working to bring parity to the LTCG tax
– India plans its own uniform carbon trading market

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets joined their global counterparts in notching up hefty gains on Tuesday as investors lapped up stocks at relatively lower levels following a slump on Monday.

Markets ended firmly in the black despite strengthening fears of large-scale rate hikes by the US Fed, the resurgence of Covid-19 cases in China and a rebound in crude oil prices.

The counters that witnessed the heaviest buying were realty, PSU banks, media, FMCG, financial services and automobiles. Buying in select index heavyweights such as Reliance and Infosys also bolstered the headline stock gauges.

The BSE barometer Sensex swung in a band of 537 points before settling a whopping 777 points higher at 57,356.

Based on the market capitalization of BSE listed stocks, Tuesday’s rise in share prices made investors richer by Rs 4.1 lakh crore.

The Nifty50 moved in a range of 159 points before closing 247 points higher at 17,200. Over the past five trading days, the index has gained 64 points.

Broader markets were mixed, with the BSE Midcap index rising 1.6 per cent to outperform the Sensex while the Smallcap index underperformed with a 0.8 per cent rise. Fear gauge India VIX slumped 10 per cent to end below the 20 mark.

On the Sensex, 26 of the 30 stocks gained. Power Grid, Titan and M&M were the largest gainers of the day, rising 3.9 per cent each, while IndusInd Bank rose 3.5 per cent. Bajaj Finance rose 3.3 per cent.

Axis Bank was the biggest loser of the day, falling 1 per cent, followed by Asian Paints which lost 0.2 per cent. Maruti and TCS shed 0.1 per cent each.

Nine stocks hit upper circuits for the day while only 1 touched its lower circuit limit. 60 stocks hit 52-week highs while 19 touched 52-week lows.

We have Ajit Mishra from Religare Broking to share his views on the action and the road ahead:

Welcome to the show, sir:
1. Markets shrugged off several factors, including the resurgence of Covid in China, fear of multiple US rate hikes and a rebound in oil prices. What drove the rally?
2. Analysts are flagging fresh margin risks for the FMCG sector from Indonesia’s palm oil export ban. How should retail players approach FMCG stocks?

We also caught up with Vaishali Parekh from Prabhudas Lilladher to decode the technical charts for you.
1. The Nifty50 settled near the 17,200 level. What do the technical charts indicate?
2. So far this week, Bank Nifty has shown resilience even when the headline index has witnessed volatility. What is your outlook for the sector?

Asian markets ended mixed for the day. Major European markets were trading with decent gains in the first few hours of trade. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!