Mr. S Hariharan, Head - Sales Trading, Emkay Global Financial Services Ltd.
Nifty made a new all-time high at 9532 in the month but came down as we saw profit booking at these levels, this also fueled by cross boarder tension with neighbor country. BankNifty also followed the similar trend making a new high of 22978 from where we saw it cooling off to end on a flat note. IT was the best outperforming sector as it gained around 5% during the month unlike previous month where it underperform the broader market. Auto and FMCG were other sectors that gained during the month; PHARMA and MEDIA were the worst performing sectors that closed around 6%.
We are seeing a higher roll over cost across stocks with Nifty roll cost of 52-55bps, highest in last 12 months (this is considering 46 bps of dividend). A good rollover % in AUTO names and higher roll cost suggest the sector to outperform next month, while lower roll cost in PSU banks suggest the sector to underperform next month.