This week in a nutshell (June 21st to June 25th)
Technical talks
NIFTY opened the week on 21st June at 15,526 and closed on 25th June at 15,860. The index made a gain of 2% this week. The index has taken support of its 10DMA of 15,768 which might act as a support. RSI (65) and MACD trending upwards suggests an up move from hereon.
Weekly highlights
- The state of Gujarat has announced a new Electric Vehicle Policy 2021, which will provide a subsidy worth Rs 8,700mn for electric vehicles and for setting up charging infrastructure in the State. EV buyers will get a subsidy up to Rs 20,000 for electric two-wheelers, up to Rs 50,000 for electric three-wheelers and up to Rs 150,000 for 4- wheelers.
- NBFCs are facing a sudden increase in loan recast, about a tenth of their loan book could be recast due to the pandemic stress. Many NBFCs are seeing recast in the June quarter, which will be implemented in the next few months. The recasts are also to be seen across the June and September quarters. (Source: The Economic Times)
- On 23 June, banks recovered Rs 58 Bn by selling Vijay Mallya’s shares in United Breweries to Heineken international, which was a 15% stake in the company. So far, banks have recovered Rs 71.8 bn through the share sales, which is a little over 70 percent of the amount that Vijay Mallya owes to the lenders.
- Reliance Industries Limited (RIL) in its AGM, has announced a Rs 750 Bn capital investment plan towards a clean energy push. RIL’s deal with Aramco is expected to conclude this year, where the latter will buy a 20% stake in RIL’s oil-to-chemical (O2C) unit. The Retail business is expected to create 1 Mn new jobs and add 10 Mn new vendors in next 3 years to the business.
- FII (Foreign Institutional Investors) selling and DII (Domestic Institutional Investors) buying trend continued this week as well. There was a net outflow of Rs 44571mn from the FII kitty while DII invested Rs 52833 mn.
Things to watch out for next week
- As the country gradually recovers from the 2nd wave of covid 19 supplemented by a strong vaccine drive, the stock market will be driven by these and global factors.
