Daily Markets - July 22, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities
Indian equity indices corrected mildly on Jul 22 after a five day rally. At the close, the Nifty shed 29.65 points or 0.27 percent to 11132.
Global developments on the US China front dented sentiments. Volumes on the NSE were large with Banks, Power and Media stocks rising while Auto, IT, PSU Banks and Realty stocks correcting. Q1 results announced yesterday and today got discounted quickly.
World shares were mostly lower on Wednesday on renewed worries over surging coronavirus caseloads in many countries. Adding to this was the flareup of tension between US and China as the US has ordered China to close its consulate in Houston, Texas, by Friday - a move described as "political provocation" by Beijing. The US State Department said the decision was taken "in order to protect American intellectual property".
Oil prices fell on data showing a bigger-than-expected inventory build-up in the United States.
Markets have shown the first sign of correction although the intraday selloff was recouped back to quite an extent. Escalations from both sides to the latest disagreement could sour sentiments even more and lead to faster correction.