Daily Markets - April 6, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: Arizona, USA)
After a sharp sell-off in the previous session, Indian benchmark equity indices ended marginally higher on April 6 amid some volatile moves. At close, the Nifty was up 45.70 points or 0.31% at 14,683.50.
Volumes on the NSE were in line with recent averages. Among sectors, Pharma, Metals, Realty, FMCG, rose the most while Bank & Media fell the most. Metals index closed at its highest level since April 2011. BSE Midcap and Smallcap indices rose 0.8-1 percent.
Asian stock markets were mostly lower on Tuesday amid cautious trading, as worries about rising coronavirus cases and extension of lockdown restrictions are weighing on the markets. European stocks played catch-up with gains in Asia and Wall Street overnight in their first trading session since the Easter holiday. Europe's benchmark equity index hit a record high on Tuesday, recovering all of its pandemic-driven losses as investors bet on a speedy global economic recovery, spurred by bumper stimulus spending and COVID-19 vaccination programmes.
World stocks hit record highs on Tuesday, supported by strong economic data from China and the United States. The Reserve Bank of Australia has kept interest rates at the historically low level of 0.1 per cent but has warned it will keep a close eye on the housing market. China's central bank asked the nation's major lenders to curtail loan growth for the rest of this year after a surge in the first two months stoked bubble risks.
Nifty has formed an inside day compared to the previous session's high-low, suggesting no fresh directional clues. The intraday volatility has however become smaller which is a good sign. Greater participation of small and midcaps has resulted in a healthy advance decline ratio. 14574-14876 could be the band for the Nifty for the near term.