Daily Markets - Sep 14, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
The Indian equity benchmark indices opened higher and the Nifty rose towards 11600, but profit taking in select largecaps resulted in Nifty giving up the gains and ending in the red. At close Nifty was 43 points, or 0.38 percent, down at 11,421.05.
Volumes on the NSE were above the recent average with a lot of mid and smallcaps registering large volumes. IT and Realty indices rose, while Banks were the major losers.
The recent SEBI circular on allocation by Multicap schemes spurred buying in a lot of small and midcaps in anticipation of fund buying that could emerge later to adhere to the new regulation. The Nifty midcap index ended 2.6% higher while the smallcap index gained 5.6% - the most since May 2014.
Wholesale inflation in India inched up for the first time since March as prices of primary articles and manufactured products increased. Inflation as measured by the wholesale price index rose to 0.16% in August (vs -0.31% forecast) compared with a contraction of 0.58% in July. Core WPI, too, is now back in inflationary territory after 13 straight months of deflation.
Asian markets pushed higher Monday as investors crept back after a recent sell-off, with coronavirus vaccine hopes given a boost and traders looking ahead to the Federal Reserve's latest policy meeting. But the reimposition of virus containment measures in several countries, worries about high stock valuations, Brexit tensions and uncertainty over the US presidential election are keeping gains in check.
European stocks kicked off the week on a positive note as hopes of a coronavirus vaccine and a flurry of global M&A activity overshadowed worries about a disorderly Brexit. European stocks gave up early gains to trade little changed.
Nifty has ended the first day of the week in the negative while the broader market has reacted positively to the latest SEBI circular.