Daily Markets - Dec 4, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices rallied and closed at another record high after the RBI kept rates on hold and did not announce steps to withdraw liquidity in the system. It raised the growth forecasts as well as inflation forecasts. At close, the Nifty was up 124.60 points or 0.95% at 13,258.50. The Nifty rose for the fifth consecutive week, rising 2.23% for the week.

Volumes on the NSE were higher than recent average. Among sectors, Banks, Metals, Infra, Realty, Pharma, FMCG indices rose the most while energy index ended in the negative.

Asian shares scaled a record high on Friday on growing prospects of a large U.S. economic stimulus package. European markets edged slightly higher on Friday as investors monitor prospects of a U.S. stimulus package and a last-minute Brexit trade deal. The MSCI's emerging market currency index stood at 2 1/2-year high, having gained more than 10% from its March trough.

Nifty closed the week up for the fifth consecutive week. While the trigger of RBI policy is out of the way, markets globally now look forward to rising chances of an early US economic stimulus package. Post a good weekly close, we may see some more upside in the early part of the week.

Source : Equity Bulls

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