Below are Views On Indian equity market ended flat after profit book took the indices lower By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Indian equity market ended flat after profit book took the indices lower. Both Nifty and Sensex recovered from the lowest point of the day to end flat. Nifty was up 5 points to close at 13,114 while Sensex ended 37 points lower at 44,618. Broader market too were mixed with Nifty Midcap 100 up +0.5% while Nifty Smallcap 100 ended flat. Realty and Metals continued their outperformance for 3rd consecutive session, up 3.0% and 2.6% respectively. Banking Stocks witnessed profit booking with Nifty Bank fell -1.2% as the two day MPC meeting commenced from today while the RBI Credit policy will be announced on 4th December. Auto Index gained +1.2% while IT, Media, FMCG & Pharma gained between 0.4-0.7%.
Global cues were positive as investors expect a COVID-19 vaccine soon and speedy economic recovery. Pfizer and Germany's BioNTech sought emergency approval of their vaccine from the European regulator while their competitor Moderna too applied for emergency approval. The government of UK approved the Pfizer coronavirus vaccine for use 'from next week' becoming the first country to begin vaccinating its population as it tries to curb the deadliest COVID-19 outbreak. Sentiments were also boosted as US lawmakers proposed a $908 bln COVID relief bill while China's November factory activity growth touched decade high. On the domestic side, Nifty fell over half percent to intra-day low on account of profit booking in Banking, Tech, Cement, NBFC and FMCG stocks.
Going ahead, Consistent FII inflows, positive developments on the vaccine front and impressive quarterly results are some of the key support drivers for the market. However, intermittent profit booking cannot be ruled out given the sharp rally in the past few weeks. Technically, Nifty formed a Doji candle on daily scale with higher highs - higher lows from the last three sessions. Now it has to continue to hold above 12950 zones to witness an up move towards 13250 levels while on the downside major support exists at 12800 zones.”
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