Markets Daily - July 1, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities
Indian benchmark indices ended higher on Jul 01 encouraged by the positive PMI Manufacturing data. At close, the Nifty was up 127.90 points or 1.24% at 10430.
India's Manufacturing PMI (seasonally adjusted) staged a partial recovery in June, coming in at 47.2, after posting anemic readings in May (30.8) and April (27.4). This improvement mirrors the modest relaxations of the nationwide lockdown that were implemented in June.
SBI Caps has set up a Special Purpose Vehicle (SPV) to purchase short-term paper from eligible NBFCs and HFCs who shall utilise the proceeds under this scheme only to extinguish existing liabilities. SPV will buy investment grade Commercial Papers and NCDs with residual maturity of not more than three months. Purchases will be made only till September 2020. This late afternoon announcement will help sentiments towards the financial sector.
Asian shares were mostly higher Wednesday (except Japan and Korea due to local negative macro data) after Wall Street capped its best quarter since 1998, shrugging off continued signs of global economic damage from the coronavirus pandemic.
Upbeat economic data gave European stocks a boost at the start of the third quarter on Wednesday, though they slipped later into mild negative territory. The final eurozone manufacturing PMI rose to 47.4 in June, from a previous estimate of 46.9 and a May level of 39.4.
Technically the Nifty broke out of the rangetrade over the past three sessions and is now headed towards 10553. On dips 10338 could provide support.