The automotive sector is weighing on the Indian index

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01/30/2019 | 04:09 pm
Indian equities, which have performed well in recent years, are starting 2019 without much movement, with an index performance close to zero.

The pressure on world trade is weakening the automotive sector. The largest decreases can be found inside the Sensex. The country's number one manufacturer, Maturi Suzuki, has dropped more than 12% since the beginning of the year. The Indian group saw its net profit decline by 17% in the third quarter. In line with this decline, other companies such as Hero Motocorp, Mahindra and Tata Steel are all falling by more than 15%, due to sectoral difficulties.

On the other hand, the banking and technology sectors were on upward trends in January. Axis Bank (+12%) remains sought by investors, after a strong increase in its net banking income, as well as Infosys (IT services), regularly positioning itself in the winning files (+11%).

Technically, in daily data, while the long-term trend remains largely upward, recent movements are more in line with a neutral pattern. Indeed, prices oscillate between the lower limit of 35,500 points and the upper line of 36,580 points. A future overrun of the resistance would make it possible to target the ambitious target of 38,000 points. On the other hand, a break in the support would cause the index to fall to the low zone of 33,500/34,000 points.
Patrick Rejaunier 2019
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