stock talk

Still if the major Indian stock market indices are trading at all-time highs, the real action this year has been in the mid-cap stocks where gains have been much greater but where valuations are also much more extended.

The correction is happening on mid-caps, while large-caps are maintaining their strength, he said.

Shipbuilding stocks were in focus as the main counters gained. Cochin Shipyard was at upper circuit of 20 per cent, Garden Reach Shipbuilders was up 10 per cent, while Mazagaon Dock Shipbuilders was up 9 per cent.

The broader market too ended in green with Midcap100/Smallcap100 up 0.1per cent/0.2 per cent.

Strong domestic factors are providing crucial support for Indian equities, allowing them to maintain their strength despite attempts by weak global peers to disrupt the mood. India's service PMI remains robust at 60.2, indicating sustained demand even in the face of inflationary pressures, he said.

The stock closed at Rs 22.44, up Rs 1.36 or 6.4 per cent on the BSE.

The 6 per cent deficiency in monsoon was an important factor with several states witnessing deficits across districts. The Evergrande Bankruptcy in China though was brushed away since real-estate loans in India are by and large regulated well now, Ranganathan said.

Domestic equities continued to witness pressure amid weak global cues. While Nifty opened lower and remained in the negative territory throughout the session to close with a loss of 100 points (-0.5 per cent) at 19,365 levels, Sensex was down 388.40 points or 0.59 per cent at 65,151.02.

Strength in the dollar index and the US 10-year bond yield remaining well above 4 per cent is a short-term negative for FPI flows to emerging markets like India, he said.

During the last seven trading sessions FPIs sold stocks worth Rs 8,545 crore in the cash market. Sharp spike in the US 10-year bond yield above 4 per cent is a near term negative for capital flows to emerging markets, he said. During the last three months, FPIs have been sustained buyers in the Indian market having invested a cumulative amount of Rs 1,37,603 crore.