Daily Market Commentary 7th October 2021 by Mr. Siddhartha Khemka, Motilal Oswal
Below is the Daily Market Commentary 7th October 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
Indian equities opened gap up and made a smart recovery backed by positive global cues. , ahead of earning season. The indices gained almost 1% led by buying in Autos, realty, Tech, Consumer durables and Jewelry stocks with the expectation of strong demand in current festive season. Except Oil & Gas, all sectoral indices ended in green. Auto, Consumer durables and Realty Indices – up 4-6%. Broader market too outperformed the benchmark.
Global markets got back their positive mojo with fall in US bond yields and oil price. Also progress over the US Debt ceiling deal between the Democrats and Republicans aided sentiments. US 10-Year bond declined marginally at 1.51%. Crude Oil prices fell nearly by 2% after an unexpected rise in US crude inventory.
Domestic markets are holding up strong on the back of several positive factors like rating outlook upgrade, strong pre-quarterly data and healthy commentary from corporates for the festive season. Although volatility has increased due to global factors as well as elevated valuations. Q2 result season would officially start with TCS numbers on Friday. Also RBI’s monetary policy meeting decision is due on Friday. In this environment of global uncertainty and sector specific action, Investors should make use of small dips in the market to accumulate fundamentally strong stocks.
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