Daily Markets - Dec 3, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices ended flat on December 3 after making fresh record highs in early trade. Nifty opened mildly higher but kept sliding for the better part of the morning. Broader market indices like Midcap and Smallcap continued to outperform the Nifty and closed at their highest since April 2018/April 2019. At close, the Nifty was up 20.10 points or 0.15% at 13,133.90.

Volumes on the NSE were higher than recent average. Among sectors, Metals Realty, Power, Auto, Pharma and Consumer Durables index gained the most while IT & Bank sectors came under profit taking.

Asian shares were mixed on Thursday after a choppy day of Wall Street trade, thanks in part to a disappointing U.S. jobs report. European shares opened lower on Thursday after gains spurred by advances in vaccines to fight COVID-19, but data across Europe underscored the economic damage still being caused by the pandemic. The IHS Markit Purchasing Managers' Index (PMI) for November in Spain shrank to 39.5 - below the 50 level separating growth from contraction. Italy's services contracted for a fourth month running, with the IHS Markit Business Activity Index for services dropping to 39.4.

India's services PMI (seasonally adjusted) remained above 50 in November, coming in at 53.7 (October: 54.1). Phased unlocking of the economy, coupled with relative control of the virus outbreak, has given impetus to services activity.

Nifty, despite the minor slide from the record opening, closed just below the earlier record of 13146. The slow upward grind of the Nifty continues while individual stocks/sectors continue to do well.

Source : Equity Bulls

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