Daily Markets - Oct 13, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices closed almost flat on Oct 13, though they closed up for the ninth consecutive day. At close, the Nifty was up 3.50 points or 0.03% at 11934.50.

Volumes on the NSE were just under the recent average. IT and Energy indices did well as did Reliance, while Bank, Media, Auto and Pharma indices were down. Broader markets ended mildly in the negative as reflected by the adverse advance decline ratio.

Asian markets were mostly flat as investors took a breather after the previous day's rally, with the mood dampened by news that a vaccine trial by J&J had been halted after a volunteer inexplicably fell ill. Investors were however encouraged by strong growth in China's trade in September. China's exports rose 9.9% from a year earlier to $239.8 billion in September, while imports gained 13.2% to $202.8 billion.

European shares retreated from five-week highs on Tuesday as Johnson & Johnson's move to pause its COVID-19 clinical trials raised doubts about the timeline of a vaccine.

New Covid cases reported in India on Oct 12 are the lowest in 56 days. Moreover, the continued high rate of recoveries coupled with the declining new cases have led to a drop in overall active cases to over 8.3 lakh from over 10 lakh in mid September.

Markets lack the momentum to make sizeable gains from the current levels and look tired in terms of indices.

Source : Equity Bulls

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