Daily Market Wrap-Up - June 9, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark equity indices erased early gains on June 09 and ended lower with Nifty below 15,650. Nifty opened flat and rose gradually to make an intra day top at 1215 Hrs. It later fell making lower tops lower bottoms. A last half an hour recovery stemmed losses to some extent. At close, the Nifty was down 104.70 points or 0.67% at 15,635.40.
Volumes on the NSE were higher than recent averages. Among sectors, Realty, Oil & Gas, Capital Goods, Auto and Telecom were the main losers while Power and Consumer durables rose. BSE Midcap and Smallcap indices lost 0.7-1 percent.
Asia Pacific stocks were broadly lower Wednesday morning but moves remained small. Fresh signs of global pricing pressures emerged from China on Wednesday, after factory-gate prices rose in May at their highest pace in nearly 13 years, driven by surging global commodity prices. European stocks traded flat on Wednesday, a day ahead of key consumer prices data in the US, while a sharp rise in Chinese factory prices sent shares of miners lower.
Net inflows into equity and equity-linked schemes in India jumped nearly threefold over the preceding month to Rs 10,083 crore in May, the highest since March 2020, according to data released by the Association of Mutual Funds in India.
Softer to flatter cues from the global markets and fatigue in the local markets at these high levels resulted in profit taking in Indian markets. The Nifty formed an engulfing top like pattern on daily charts after making a triple top like formation over the last three days in the 15773-15800 band. Advance decline ratio also turned negative after a gap of 5 days. Whether Nifty will show follow through weakness in the days to come will be keenly watched. 15567-15680 is the band for the Nifty in the near term.