Below is the Quote on daily market commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
“Indian equity markets opened flat but soon drifted to red, following selloff in the global markets; thus erasing the entire yesterday’s gains. Nifty fell 160 points lower (-1.3%) at 11,730, while Sensex plunged 600 points down (-1.5%) at 39,922. Both Nifty Midcap 100/Nifty Small Cap 100 also fell -1.0% each. India VIX rose nearly 5% to close at 23.3 levels. All the sectors ended in red with Banks (-2.2%) and Financials (-2.3%) being the biggest losers, followed by Realty (-2%). IT, Pharma, Metals, and Media too fell 1-1.5%.
Global cues continue to be weak and European markets dropped to 5-month low on fears of lockdown measures in many European countries spooked investors after coronavirus cases surged at a rapid pace. The US, Russia, France and other countries have registered record numbers of infections in recent days, and European governments have introduced new curbs to try to rein in the fast-growing outbreaks. Further, no stimulus announcement as well as elections in US too are keeping investors on edge. On the domestic side, weak global cues over-shadowed optimism from strong domestic earnings reports. HDFC Ltd, HDFC Bank, ICICI Bank and Reliance Industries were the biggest drags on Sensex, contributing more than 350 points to its fall. On the other hand, Bharti Airtel closed 4.3% higher, after it reported its highest ever quarterly revenue, boosted by higher tariffs and a rise in data usage.
Going ahead, market is likely to remain under pressure, till the U.S. elections conclude. The monthly F&O expiry on Thursday will further add to the volatility. Technically, Nifty has again got stuck in range where declines are being bought while multiple hurdles are intact at 12000. Now key support is seen at 11650 and a move below that, Nifty can witness further selling towards 11500. Investors would look for cues from the ECB and BoJ monetary policy meet on Thursday along with US GDP data”
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