Daily Markets - May 6, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark equity indices rose for the second straight day following healthy global cues. The Nifty opened higher and kept making higher tops higher bottoms through the day. At close, Nifty gained 0.73% or 107 points to 14,724.80.
Volumes on the NSE were in line with recent averages. Among sectors, IT, Auto, Metals and Oil & Gas indices rose the most while there were no sectoral losers.
Asian shares rose on Thursday and commodity prices held near multi-year highs as investors switched to cyclicals amid expectations of a strong economic recovery. European shares gave up early gains ahead of the Bank of England's monetary policy decision even as corporates continued reporting encouraging numbers. In economic news, strong domestic demand for consumer goods propelled a bigger than expected 3% jump in German industrial orders in March.
China said it would end economic dialogue with Canberra. US-China phase one trade deal will soon be discussed and it isn't likely to have a smooth start.
Monsoon rains that mark the start of the four-month rainy season are likely to enter India through the southern coast around June 1, in line with typical patterns, a top government official said on Thursday. India's weather office will issue its official forecast for this year's monsoon onset on May 15.
Nifty moved above the high of May 04, thus signalling that the May 03 bottom of 14416 is a short term bottom. The next resistance for the Nifty is at 14846 while the support is at 14601. FPI selling seemed to be subdued today, while local traders continued to ramp up prices of select small and midcap stocks.