Daily Markets - Feb 24, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: Arizona, USA)
Indian equity benchmark indices witnessed a session marred by a technical outage that disrupted trading on the NSE for nearly four hours. The Nifty opened flat and rose in early trade. The NSE shut trading in its cash and derivative segments at 1140 Hrs, citing "issues" with telecom links of its two service providers, which it said impacted the system and stopped prices from updating. Trading resumed on the NSE at 1545 Hrs and indices rose sharply post the second opening due to square off/shifting activities across exchanges. BSE continued to have normal trading in all segments through the extended day. The trading time on both the exchanges has been extended to 5 P.M.
At close the NSE Nifty 50 index gained 1.9% to end near the mark of 15,000 at 14,982. Volumes on the NSE were expectedly lower than the recent average. However volumes on the BSE at Rs.40700 cr were the highest since March 2017, due to diversion of trades to that exchange. Among sectors, Banks, Media, Metals and Realty indices gained the most. Broader markets also ended with gains but underperformed the benchmark indices.
Shares fell Wednesday in Asia as investors weighed the possibility that inflation might prompt central banks to adjust their ultra-low interest rate policies. Also the recent climb in US bond yields put high valuations of growth stocks under pressure. The worst hit was the Hong Kong Hang Seng, registering a fall of 3%. Investors hit sell after the city said it would raise stamp duty tax on share transactions from 0.1% to 0.13%. European shares opened generally flat to higher on Wednesday after Fed Chair Jerome Powell pushed back against inflation fears. Revised data showed German gross domestic product for the fourth quarter rose an adjusted 0.3% from the prior quarter, which was above a preliminary estimate of 0.1% and above expectations for 0.1%.
Nifty has bounced up well after the 5 day fall seen recently. Although this rise is to be seen in the backdrop of the widespread weakness across Asia, the momentum in the indices could take the Nifty up to 15039-15132 band in the near term. However for the time being it seems as a correction of the recent fall and not a new uptrend.