Dalal Street underperformed the global equity markets this week, thanks to F&O expiry on thursday, only to see Asian peers sliding on Friday. Wall Street closed flat after Dow lost more than 100 points at one point of time.
Nikkei is trading down on Friday morning due to continued strength in the yen while Australia is trading marginally down.
Q2 Numbers - No major impact
While Q2 numbers were inline with market expectations, stocks started feeling the heat after announcement of numbers. We believe markets have discounted the current Q2 numbers way before. Except for fund inflows we do not see any other major reason for the markets to go up. Refunds will hit the market anytime and there is an absolute reason to be bullish.
Textile Stocks
Despite of strong raw material costs in the form of rising cotton price, textile stocks are buzzing on the street as retail business is picking up and partly due to monetizing their land banks.
We expect this sector to extend the current rally and might see a multi-year rally with intermediate corrections