Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel https://t.me/InvestmentGuruIndia
Download Telegram App before Joining the Channel
Below is the Views On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Indian Equity market witnessed huge volatility today due to fear on rising cases of coronavirus in India. After surging 1% in the morning trade, Nifty ended the session at 0.2% higher to close at 11269. The broader market mirrored benchmarks, with both Nifty Midcap 100 and Nifty Smallcap 100 up 0.1%. Sectorally it was a mixed bag with PSU Banks and FMCG being the biggest gainers while Realty was the biggest loser. Global markets surged on hopes that the collective efforts of central banks and governments would help in arresting the economic setback from coronavirus. Indian equity markets also opened positively but gave up the gains later as more cases got reported.
Following the Central Banks and governments globally, IMF has also announced stimulus worth $50bn. This has lifted the market sentiments globally. But rising cases of coronavirus in India has dampened investor sentiments domestically and kept the markets highly volatile. If not continued well, the spread of the virus can have significant impact on the domestic consumption-driven economy which is already under significant pressure. In fact, this event has introduced additional downside risks to our earnings estimates for FY21. Till we see a semblance of normalcy returning, markets are likely to remain highly volatile. Fluctuations in FII equity flows can also add to volatility. Meanwhile, select sectors with better earnings visibility would continue to enjoy valuation premium over broader markets.
Technically, Nifty formed a negative candle on daily chart. 11110-11035 levels remains a strong support zone for the index; while major resistance is placed at 11430-11500 levels.”
For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412
Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. Click Here For Disclaimer