Week ending 12th June 2020 was overall not a good week for the Indian and world markets with majority of stocks in the index closing with negative gains. Only 3 stocks – Indusindbank, Mahindra and HDFC closed with reasonable gains – more than 5%. Stocks like HDFC, Adani ports, Cipla, Reliance, Dr Reddy and Hero motors also managed to close in green by end of the week.
Many stocks in the index closed in deep red with more than 5% cut like Icici bank, Ioc, Bpcl, Titan, Tech mahindra, Axis Bank, Upl, Wipro, Ongc, Coal India, Gail, Tata motors and Zeel.
Even thought our markets recovered smartly from march lows now it is in a consolidation mood. Fear about a second wave of corona virus covid 19 and gloomy picture by US Fed triggered a major selling in the US markets and that reflected in the Indian markets too. Overall Indian picture of corona virus also not promising as cases skyrocketing every day and spreading to more and more town and villages.
At this stage nobody is very optimistic about financial markets and economy as more bad news expected in the coming weeks and months. So if you are an investor, then don’t invest everything. Better to sit with some cash too as negativity can grip markets again any time like happened in March. Regular profit and loss booking also recommended at this kind of markets as nobody knows what is going to happen tomorrow. Trade and invest very carefully at this kind of uncertainty persists.