Daily Markets -Sep 9, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Indian equity benchmark indices opened gap down in line with weakness in other Asian markets but gradually recovered ground and closed near the day's high on Sept 09. Eventually the Nifty ended 39 points or 0.35% lower at 11278.
The recovery was led by Reliance (post the plan by Silverlake to take 1.75% stake in Retail arm for Rs.7500 cr), Metal, Media and Pharma stocks. Banks on the other hand were losers. Bank stocks came under selling pressure post the recent changes by the RBI in PSL lending norms and announcement of resolution framework by the Kamath Committee. Volumes on the NSE were in line with recent averages. Smallcap index fell 1.5% suggesting broad based profit taking.
Asian shares fell on Wednesday and oil prices hit lows since June after a collapse in technology shares sank Wall Street for a third consecutive day and a major drugmaker delayed testing of a coronavirus vaccine. European markets advanced Wednesday as investors set aside renewed concerns about the coronavirus pandemic and looked past a sharp decline in the value of tech shares.
The fact that the Nifty has closed way off the intra day lows is encouraging and portends a possibility of some upward correction in the near term.