Daily Markets - April 16, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark equity indices erased most of the intraday gains in the last hour of trade on April 16. Nifty gained in the first hour of trade, remained in a range till 1430 Hrs and then sold off. At close, the Nifty was up 36.40 points or 0.25% at 14,617.90.
Volumes on the NSE were below recent averages. Except financials all other sectoral indices ended in the green led by Pharma, Media, Auto and IT. BSE Midcap and Smallcap indices rose 1 percent each. Over the week, PSU Bank, Realty Media, IT were losers while Pharma index gained. For the truncated week, the Nifty ended with losses of 1.5%.
Global stocks hit a record high on Friday and oil climbed after strong U.S. and Chinese economic data bolstered expectations of a solid global recovery from the coronavirus-induced slump. Asian markets rose Friday as record Chinese economic growth reaffirmed the country's strong recovery, while traders also tracked a Wall Street surge that was fuelled by blockbuster reports on US consumer spending and jobless claims. European stocks hit a record high on Friday after strong U.S. and China data spurred optimism about a speedy global recovery.
India's South West Monsoon for 2021 is expected to be normal at 98 percent of the long-period average, the India Meteorological Department said on April 16. A range of 96-104 percent of long-period average is considered as normal monsoon. This will be the first normal monsoon in three years after two above-average monsoon rainfall in the last two years, which is welcome news for an economy dented by a second 'wave' of COVID-19 cases and reduced activity due to localised curfews and lockdowns.
Nifty ended the day on a weak note, however on a weekly basis, it has closed much above the intra week low. It failed to bridge the down gap made on April 12. Broader markets keeps giving conflicting signals with alternate healthy and unhealthy advance decline ratio. Global cues will keep restricting downside for Indian markets while stock specific moves will keep happening in a period when the results season has just begun. 14249 - 14785 remains the range to watch for in the Nifty in the near term.