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15k is finally here. For the moment, it cant get any bigger than this for the bulls. Though they stretched themselves for 146 days to move from 14K to 15K. With result season kicking off and RBI meeting later this month, the ride is sure to get bumpy.
Bulls are now in uncharted territory. Much will depend on the performance of tech companies as Infosys starts the earnings season on July 11. Earnings guidance would play an important role going ahead given the appreciation in the rupee. Any negative noises from Infosys and its fellow software firms could keep the bulls on the back foot. According to India Infoline estimates, results of the top 3 companies would be disappointing and in line with market expectations. Satyam and HCL Tech are expected to come out with relatively better numbers.
However, much of the tech stocks may already be factored in the prices. Therefore, any positive sounds could result in buying at these levels. We advise buying the Top 5 Companies post results with enhanced clarity on growth and profitability.
Banking stocks will continue to be in focus with inflation around 4% and likely to remain low for another couple of months banks have seen a window of opportunity in reducing select rates while keeping PLR at same level to align with the hawkish stance of RBI.