Daily Markets - May 14, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark equity indices ended flat after a mildly volatile day on May 14. Nifty opened slightly higher but kept seeing repeated bouts of sell-offs followed by bounces through the day. At close, the Nifty was down 18.70 points or 0.13% at 14677.80.
Volumes on the NSE were higher than recent averages. Among sectors, FMCG was the main gainer, while Metals, Healthcare, Power, Auto, Realty and Oil & Gas were the main losers.
Asian shares rose Friday after Wall Street put the brakes on a three-day losing streak with a broad stock market rally powered by Big Tech companies and banks. Singapore stocks tumbled more than 2% on Friday after the city-state's imposition of the strictest COVID-19 curbs since last year stoked worries of a potential unravelling of its nascent recovery.
European stocks climbed modestly to finish the week after Wall Street snapped a three-day losing streak on Thursday, having been rocked by inflation concerns in recent sessions. Investors will be watching the European Central Bank's minutes of its latest policy meeting, to be released later in the day, to get clues on the tapering of its bond purchase scheme. Investors will also be watching U.S. retail sales and industrial production data due later in the day.
After two weeks of gains, the Nifty ended the week 0.98% lower as coronavirus cases continue to surge, triggering concerns that a wider lockdown may be reimposed. Advance decline ratio was again negative suggesting continued profit taking in the broad market. The sell-off seen in The US markets on May 12 has unnerved a lot of investors as the likelihood of inflation/interest rate hike led sell-off across the globe is becoming stronger. However as the Nifty refuses to close at the intra day lows over the past two days, hopes of a short term upmove are still alive. 14506-14851 seems to be the new band for the Nifty for the near term.