Market Ahead Podcast, Oct 1: Top factors that could guide markets today

The stupendous rally in the first six months of 2021-22 met with a lacklustre end, with the benchmark indices declining for a third straight day on Thursday. But they still managed to offer 20 per cent returns to investors during this period, which saw

the BSE Sensex rising from the 50,000 level to over 60,000 and the NSE Nifty from 14,700 to nearly 18,000.

The markets not only withstood a strong second wave of Covid-19 during this period but also held their ground amid talks of the US Fed tapering, the Evergrande crisis, and strong inflation fears.

Against this backdrop, the show put up by the broader markets was even more noteworthy. The BSE Midcap index surged 25 per cent, while the BSE Smallcap rose by a whopping 36 per cent. A major chunk of gains came from the Realty, Metals, Media and IT packs, which soared between 35 and 53 per cent on the NSE. The auto, pharma and banking sectors' performance against this was muted, as they added between 7 and 16 per cent.

Now, can the equity bull run continue in the second half of FY22? In that scenario, would outperformance by broader markets last? What are some of the key risks for the market this financial year? Jyoti Roy, DVP Equity Strategist, Angel One answers all of them in this podcast

The action in the primary market will also remain strong. The IPO by Aditya Birla Sun Life AMC will open for the third and final day today. On Thursday, the issue sailed through with 1.07 times subscription. Lastly, shares of Paras Defense will list on the bourses. After a record-breaking performance in the IPO market, the company could attempt to stage a similar move with a blockbuster listing. In the grey market, Paras Defense was quoting at a 140 per cent premium over its issue price of Rs 175.