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Below are Quote on Daily Market Commentary1st June 2021 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Equity markets opened on a strong note and touched yet another lifetime high with Nifty touching 15,660 intraday before profit book led the index to close with loss of 8 points (-0.05%) at 15,575 levels. Sensex too closed flat -3 points lower to end at 51,935. Selling was witnessed in broader markets which underperformed as Nifty Midcap100/ Nifty Smallcap100 fell -0.1%/-0.65% respectively. Baring Media (+0.3%), IT (+0.1%) and Pharma (0%) all other sectors ended in red. Metals (-0.8%), Banks (-0.5%), Realty (-0.5%), Auto (-0.3%) were among the losers. India VIX inched up by ~3% to 17.4 but continues to remain low indicating positive momentum could continue.

Global cues were positive despite US market being shut as European and Asian markets opened on a strong note on Optimism over the economic recovery prospects. On the domestic side, profit booking at higher levels led the markets to end on a flat note. Sentiments were buoyant as the GDP growth in Q4 came in at 1.6% ahead of expectation of 1% while overall for FY21 it contracted by 7.3% (expectation of -7.5%). On the other hand, daily case count of fresh Covid-19 infections continue to decline. Adani Ports was the top gainer in Nifty followed by ONGC, Bajaj Finance, SBI and HDFC ltd. While JSW steel, Tata Steel, ICICI Bank, Asian Paints and Ultratech Cement were among the laggards. India PMI data which came in at an 8 month low weighed on the sentiments today and profit booking was witnessed across many stocks.

The overall structure of the market remains positive as fresh covid cases continue to decline and investors are upbeat about unlocking of economy in June which will help revive commercial activities. Hopes of further stimulus by government is also bolstering investor confidence. On the other hand, India’s pace of vaccination has picked up over past few days. Thus, as the 2^nd Covid-19 wave continues to recede in India and pace of vaccination picks up, we expect the long term fundamentals to remain intact. Technically Nifty has room for further upside towards 15750 zones while on the downside support exists at 15400-15300 zones. RBI’s MPC meeting on Friday would be key moniterable this week, where the officials are expected to maintain their accommodative stance.

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