Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Indian equity markets opened negative and remained consolidative for most part of the session. Nifty ended 45 points lower (-0.4%) to close at 10,768, while Sensex was down 143 points (-0.4%) to close at 36,594. Even the broader market remained subdued with Nifty Midcap 100/ Smallcap 100 down 0.7%/0.2%. Banking (-2.2%) & Financial Services (-1.9%) largely dragged the market down. Even Auto (-0.6%) and Metals (-0.8%) showed some weakness. However, a rally in Reliance Industries to new all-time high of Rs1,885 capped the downside in the benchmarks. FMCG (+0.5%), Pharma (+0.9%), Oil & Gas (+0.5%) and IT (+0.2%) were among the gainers today.
Global cues were weak as record new coronavirus cases and deaths in several U.S. states stoked concerns that new lockdowns could derail the economic recovery. Even domestic sentiments were weak on the back of continuous sharp rise in cases in India and increasing lockdowns once again. Thus the market seems to be oscillating between greed and fear. On one side there is hope of gradual economic recovery along with positive management commentary while on the other side, there is fear of rising covid cases leading to lockdown again. The June quarter earnings season started yesterday with TCS reporting numbers below estimates. This earnings season would be of key significance as it faced the maximum brunt of lockdown. Thus management commentary would be keenly watched out for and could keep the markets volatile in the near term. Technically, Nifty formed a Doji candle on daily scale as it closed near to its opening zones which indicate an indecisive market stance. Hence we would advise traders to stay cautious and keep booking profit at regular intervals and focus on stock specific action. “