Daily Markets - April 8, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: Arizona, USA)
Indian benchmark equity indices gained for the third straight day on April 08 - the longest such streak in a month - , however, weekly F&O related volatility dragged the indices lower from their intra day highs. Nifty after rising in the initial part of the day, fell post 1335 Hrs. At close, the NSE Nifty 50 index rose 0.4% to end at 14,873.
Volumes on the NSE were higher than recent averages. Among sectors, Metals, IT and Oil & gas were the main gainers, while Banks were the main losers.
Equity mutual funds witnessed their first inflow in nine months in March even as benchmark indices remain flat after scaling record peaks in February. Investors pumped in a net Rs 9,115.1 crore into equity and equity-linked schemes in March compared with an outflow of Rs 10,468 crore in February.
INR fell another 0.4% to 74.64 vs the USD on panic buying by importers and announcement of GSAP by the MPC on April 07. India 10 year Gsec yields fell 3 bps to 6.04%.
Stocks in Europe reached record highs on Thursday, buoyed by optimism in Britain over easing lockdown restrictions. Most Asian and European stock markets rose on Thursday, getting a boost from signs the Federal Reserve was in no hurry to remove stimulus as the Biden administration eased its stance on corporate tax hikes. Equity volatility continued to remain tepid around its lowest levels since the pandemic began, encouraging risk-taking. The short-term momentum appears to remain in favour of the bulls.
Nifty rose during the day but gave up big part of their gains towards the end. In the result it has formed a long legged doji post a minor rise. This suggests mild caution on the part of participants. On upmoves 14984-15050 band could provide resistance to the Nifty while 14716-14821 band could provide support.