WEEKLY TRENDSETTER ( JUNE 26 ,2026)
| 2026 | JUNE 12 | JUNE 19 | Ch % |
| NIFTY | 23623 | 24013 | 1.65 |
| BANK NIFTY | 56814 | 57686 | 1.53 |
| USD/INR | 94.83 | 94.45 | -0.40 |
MARKET REVIEW-The market had a gap up opening on the back of the US -Iran truce which at least promises some respite from war for the next 60 days. Towards close of week some weakness creeped in which was largely on the back of weakness in IT stocks which reacted to a negative revenue guidance from Accenture. However, they did manage to recoup some of the losses by close. The broader market was however buzzing in action with several recent listings witnessing investor interest.
INTERESTING CUES
Anthropic and Open AI s valuation woes
Despite having some robust AI models which are causing disruption in the IT world both the companies are now debating pricing power which will finally dictate valuation. In the case of Anthropic, its recent spat with the US Govt has led to export ban on its most advanced AI models. Anthropic based on revenue of $50bn is expected to have a valuation multiple of 20 times which ideally looks reasonably. However finally profitability would be the key and this is where a debate is brewing as Open AI, its competitor is planning to drastically cut what it charges its customers and this could trigger a price war.
Fed chief begins tenure with hawkish stance
The new chief’s earlier comments that an AI productivity boom would ease inflation
did not hold water as the recent surge in inflation clearly put him on the back foot. Far from a rate cut, the Fed chief even hinted at a possible rate hike in 2026.This saw the 2-year treasury yield gain 17 basis points after the meeting. However, lot depends on the trajectory of oil which has cooled off to less the $80 per barrel from levels of nearly $100 on the back of the end in hostilities.
NIFTY –The gap up opening in the beginning of the week saw some cooling off towards close of week but still managed to close above 24000.Immediate support lies at 23800 which should ideally hold. On the upside 24300 should be the next hurdle.
BANK NIFTY-The index showed good strength as a gap up move above the 200 -dma did not attract much profit taking and the index closed with gains for the week. While the index is in focus, what is really catching the eye is some of the newly listed banks which have started attracting buying interest and even the smaller names are showing strength.
Hotel stocks in limelight
The industry saw a massive boom post pandemic as tourists flocked to popular destinations and average room rents (ARR) zoomed as there was a supply scarcity. Encouraged by the flow of tourists, hotels planned expansion and room capacity is expected to rise upto 6-7% in the next 18 months. While tourist crowd is growing at a steady clip, it is expected that the ARR could either remain flat or turn slightly negative. Hotel stocks have surged steeply in the past 3-4 years and even after a correction in the the last 2 years look relatively expensive. Opportunity probably lies in some of the hotels getting acquired resulting in a consolidation of the industry. With land costs already at dizzy heights new entrants may not find it attractive to enter at current levels. Thus, the existing hotels enjoy an early entry advantage and many already have land banks for expansion which they could leverage to their advantage.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam
DISCLAIMER: Kindly note that I am not SEBI registered and the above content is for educational/informational use only and users should consult a registered professional before investing.