Daily Market Wrap - Sep 7, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
2021-09-07 23:44:09 (Time Zone: IST)
Nifty snapped a three day winning streak on Sept 07 after volatile moves in a narrow band. After opening, Nifty made an intra day low at 1015 Hrs and then rose. Post 1250 Hrs, Nifty corrected and closed almost flat. At close Nifty was down 0.09% or 16 points to 17362.
On a day when the volumes on the NSE were lower than recent average, Realty, Oil & gas and IT indices fell while Telecom and Consumer Durables indices rose. Broad market indices fell more than the Nifty.
A global stocks index hit a record high on Tuesday as investors took comfort in growing views the U.S. Federal Reserve is likely to delay the start of tapering its asset purchases and maintain its expansive monetary policy for the near-term. European stocks however dipped after opening while Asian markets closed mixed.
China's export growth unexpectedly surged in August as suppliers likely boosted orders ahead of the year-end shopping season, offsetting any port disruptions due to fresh outbreaks of the delta virus. Exports rose 25.6% in dollar terms from a year earlier to a record $294.3 billion, more than $10 billion above any previous month. Imports grew 33.1% to $236 billion, also the highest level ever, leaving a trade surplus of $58.3 billion for the month. China's effective control of virus cases may have led suppliers to divert orders from other Asian countries, which are battling delta outbreaks and struggling to keep manufacturing operations going.
Nifty had a larger high-low range on Tuesday compared to the previous day. However the close was not too different. As US markets were shut on Monday, global stocks are finding it difficult to find cues and hence direction. Post resumption of US markets on Tuesday, we may see higher volatility and close on close change on Wednesday. Advance decline ratio again dipped to much below 1:1 worrying investors and dampening volumes.