Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
“Indian equity markets despite opening in red due to weak global cues, recovered in the last hour of the trade, continuing its positive momentum for the third straight day. Nifty50 surged 90 points (+1.0%) to 9580 levels while Sensex rose 224 points to close at 32,424 level (+0.7%). The broader market also participated in the rally with Nifty Midcap 100/Nifty Smallcap 100 up 1.1%/0.9%. Almost all the sectors ended in green with Pharma (+3.2%), FMCG (+3.0%) and Auto (+1.7%) supporting the rally. IT ended in marginal red, down 0.1%.
Global cues were negative today due to rising tensions between US and China, ignoring positive news-flow of stimulus and economies opening up. Indian markets witnessed volatility led by weak global sentiments, sharp single day rise in Covid cases in the country and cautiousness ahead of the GDP data and Trump’s press conference.
The market is awaiting the US President Donald Trump's response to China's passage of a national security law for Hong Kong. India’s Q4FY20 GDP will also release post-market hours, which is expected to slow down rapidly. Thus investors will be looking at the commentary to understand the course of recovery. Given slew of events lined up today and over the weekend, markets will react accordingly next week. The lockdown 4.0 is coming to an end on May 31st, thus market would keep a close eye on further announcements from the government over lockdown extension along with easing of restrictions. Even auto monthly sales data for the month of May will start coming from Monday which would reflect consumer sentiment. On the positive side, as per IMD, monsoon is likely to reach Kerala early next week which would be closely tracked.”
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