Daily Market Commentary - Feb 3, 2021 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

On Wednesday Indian equity benchmarks made a flat-to-positive start tracking overnight gains on Wall Street. Soon markets turned volatile and entered into red territory, but managed to wipe out all losses and came back in the green in early deals with gains of around half a percent each. Broad-based buying in Healthcare, IT and TECK stocks supported the domestic indices. In the afternoon session, Indian equity benchmarks continuing their rally mood as investors cheered the report that India's services sector expanded for the fourth consecutive month in January as business activities quickened and rising business optimism is set to sustain the growth momentum.

Most of the Asian equity benchmarks are trading higher on Wednesday, cheering gains in the US stock market counting on better than expected earnings results, optimism over the next installment of the US stimulus package after President Joe Biden met with a group of ten Republican Senators who have offered a counterproposal to his $1.9 trillion relief plan.

Niti Aayog Vice-Chairman has said the reform measures announced in the budget 2021-22 are aimed at taking India out of the COVID-19-induced downturn and making the country a better destination for private investment, both for domestic and foreign investors.

In Nifty 50 top gainers are Indusind Bank Ltd, Power Grid Corporation of India Ltd, Coal India Ltd, Sun Pharmaceutical Industries Ltd and Dr. Reddy's Laboratories Ltd. The loser was Shree Cement Ltd, UltraTech Cement Ltd, Maruti Suzuki India Ltd, UPL Ltd and ITC Ltd.

Source : Equity Bulls

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