The heat was scorching, almost 2–3 degrees above normal. A dip in a cool pool would have helped. But for the bulls and those invested in IT stocks, it was a different kind of dip. Rather a plunge that would take some time for them to come back to the surface, or at least closer to it.
Infosys Ltd. proved to be a cesspool, dragging all other IT stocks into the current. About Rs 54,000 crore were wiped out from the wealth of those holding this stock. The entire IT pack left investors with losses worth Rs 99,985 crore.
Yet, the management's take, the analysts' views, and all the social media advisors notwithstanding, Infosys still has its appeal. That's what the data says, and the faith seems to be unbridled. My colleague, Hiral Dadia, has done a deep-dive to bring this out.
As we settled down for a 360-degree coverage of the markets, we thought HDFC Bank Ltd. sounded good. But the markets had a different view. The stock lost ground. So, the two leads kept the heat on the bulls while the bears had a field day.
But you may want to cheer a bit if only you had a 'smoke.' No, we are not asking you to light a cigarette. But cigarettes brought some smiles. Add a 'C' to IT, and you get a great story about ITC Ltd. hitting a life-time high at Rs 400. Really! Only a few months ago, digital and social media were agog with requiems written by 'experts' and the 'disheartened' ITC shareholders. We are not saying, buy ITC. After all, smoking is 'injurious' to health. As of today, it's not injurious to wealth.
ITC is not all 'smoke', though. It's also food and falls in the FMCG category. Money appears to have shifted to the forgotten FMCG sector. The monsoon will be normal. The Indian Meteorological Department said so. Skymet, an independent weather agency, had a different view. Normal, below normal, or abnormal—whatever it may be. It would be good if it rained and brought down the temperature. Staying liquid matters in the markets, too!
Muralidhar Swaminathan is Consulting Editor at BQ Prime.
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