InvestorQ : What is your stock market trading view for Wednesday 16 June and do you see the Adani stocks getting further impacted?
Dia Deshpande made post

What is your stock market trading view for Wednesday 16 June and do you see the Adani stocks getting further impacted?

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diksha shah answered.
3 months ago
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If Monday was the day the Adani stocks bore the brunt of the market correction, then Tuesday continued to see these stocks under pressure. On 15 Jun, the Nifty closed at 15,869 but intraday the stocks did give up substantial gains from higher levels as the advance / decline ratio or the A/D tapered to parity at 25:25 for the Nifty index. The Adani group stocks remained under pressure, despite reassurances.

Continuing on the Adani group stocks, despite the reassurances coming from the Adani group and NSDL about there being no substance, these stocks did not recover. On the contrary, they weakened further on Tuesday. Investors were not willing to buy into the story, although NSDL also confirmed that the freeze had nothing to do with Adani group. Investors have been worried by the manifold growth in Adani stocks in last 1 year.

However, despite all the furore over FPI freeze, the FPI flows were not significantly impacted. On Tuesday FPIs were net buyers to the tune of Rs.634 crore while DFIs sold equities worth Rs.649 crore. In terms of global markets, the NASDAQ was down 74 bps while DJIA closed 28 bps lower. European markets were strong on Tuesday but SGX Nifty is 25 bps lower in early trades.

I think the bigger concern for the markets would be the challenges to IIP growth and the spike in inflation, which touched a high of 6.3% in May 2021. The latest trade data also hints at exports growth being constrained by the pressure on the MSME sector. Under these circumstances, it is the Fed stance and the RBI stance on rates and liquidity that would of ral interest for traders and investors alike.

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