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Published on 6/05/2020 7:07:06 PM | Source: Motilal Oswal Financial Securities Ltd

Daily Market Commentary 6 May 2020 by Mr. Siddhartha Khemka, Motilal Oswal

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Below is the View On Daily market commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

“Indian equity markets ended the volatile session in green today, led by gains in banking, finance and auto stocks. After swinging over 800 points during the day, Sensex ended 232 points higher to close at 31,686 level (+0.7%) while Nifty50 was up 65 points to close at 9,271 level (+0.7%). Even Nifty Midcap 100/Nifty Smallcap 100 were up 0.6%/0.7% respectively. All the sectors ended in green except FMCG which was down 1.9%. India VIX cooled down 5% to 41 level. Brent crude futures rose 1.7% to USD 31.48 per barrel. On the currency front, the rupee depreciated 9 paise to close at 75.72 against the US dollar.

 Sentiments continue to remain weak on back of high valuations, weak results and no stimulus announcement by Government so far. Earnings have already seen a sharp 30% downward revision and we now expect the Nifty to deliver another year of flattish earnings in FY21. Early results of 4QFY20 earnings season and management commentaries suggest more volatility and disruption in earnings ahead. In the near-term, we expect the market direction to depend upon the spread and intensity of COVID cases, development around Covid vaccine and incremental government/ regulatory actions to restart the economy. Investors would also track the developments around the trade tensions between US and China.”

 

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