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Published on 16/04/2020 6:31:43 PM | Source: Motilal Oswal Financial Securities Ltd

Daily Market Commentary 16 April 2020 by Mr. Siddhartha Khemka, Motilal Oswal

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“Indian equity markets despite opening in red, recovered in second half, tracking the recovery in the global markets and on hopes of fiscal stimulus package by the government. Sensex rose 223 points to close at 30,603 level (+0.7%) while Nifty50 was up 68 points to close at 8,993 level (+0.8%). The broader market outperformed the benchmarks, with both Nifty Midcap 100/Nifty Smallcap 100 up 1.8%/2.8% respectively. All the sectors ended in green except FMCG and IT which were down 0.6% and 1.9% respectively. Media was the biggest gainer, up 2.6% followed by Banks, Pharma, Metals and Auto which were up in the range of 1.1%-1.8%. India VIX further cooled down by 8% to end at one-month low of 46 level. On the currency front, the rupee tanked 43 paise to settle at a fresh all-time low of 76.87 against the US dollar. Brent crude futures rose 2.3% to USD 28.32 per barrel.

 The markets opened weak in the early trade due to poor US retail sales data and factory production. However the sentiments turned positive as an increasing number of European countries cautiously started to ease lockdown this week. The sentiments got further uplifted post the media reports that the government is working on a fiscal package and is closely studying the impact of Covid-19 on various industries. IT stocks were impacted today due to the muted earnings commentary from Wipro. TCS earnings are expected later today which will give a clearer picture of the impact of Covid-19 on the IT sector and demand outlook from the developed markets.

 The number of cases in India has surpassed 12,000 mark while the death toll has risen to more than 400. Global tally of the infections has crossed 20 lakh, with over 1.37 lakh deaths. Going ahead, the markets would continue to remain volatile as it would track trend in coronavirus cases and government relief measures to combat the economic crisis due to it. Further the earnings season has kicked started, and thus investors would be focusing on the management commentary with regards to the impact of Covid-19 on their respective businesses.”

 

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