Markets Daily - Nov 23, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: Arizona, USA)
Indian equity benchmark indices ended the first day of the week with gains, even as banking stocks underperformed in a volatile session. At close the NSE Nifty 50 index ended 0.52% higher at 12,926.
Volumes on the NSE remained high compared to recent averages. IT, Pharma, Metals and Realty indices were the main gainers while Banks were the main losers even though some Banks rose following the recommendations of the RBI working group on allowing changes in ownership of Banks.
Global stocks advanced as AstraZeneca Plc said an interim analysis of clinical trials showed its coronavirus vaccine has an average efficacy of 70% in protecting against the virus. Vaccine announcements have added to the risk-on mood in markets as investors looked forward to the end of the pandemic. Investors' also got excited after a top official of the U.S. government's vaccine development effort said Sunday that the first vaccines could be given to U.S. healthcare workers and others recommended by mid-December.
IHS Markit's flash purchasing manager's index (PMI) index for the euro zone, which looks at activity in both manufacturing and services sectors, came in at 45.1 in November - the lowest reading in six months.
The US dollar dropped to low levels last seen in 2018 as fast-tracked plans to roll out a coronavirus vaccine in the U.S. supported the market mood for risk assets. The dollar has fallen more than 11% from its record high in March. This helps prices of commodities and emerging equities.
Nifty seems to be inching towards the 13200-13300 mark over the next few sessions as the street continues to get excited by vaccine news. Repeated intraday recovery from the lows comforts the traders and investors.