Daily Markets - May 4, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark indices fell for the second times in three days on May 04, following concerns over FPI selling in the recent past and further action expected to combat the Covid situation. The Nifty started to fall post 1250 Hrs. At close the Nifty was down 138 points or 0.94% to 14497.
Volumes on the NSE were higher than recent averages suggesting that the buying by domestic institutions was subdued while Retail and HNI started to take profits as is evident from the negative advance decline ratio. Among sectors, all ended in the negative except Utilities, Capital Goods and Oil & Gas. Loss leaders included Healthcare, Telecom and Consumer durables.
Asian stocks were largely lukewarm on Tuesday as a continuous surge in COVID-19 cases kept investors on the sidelines amid holiday-thinned trade. Some Asian markets however recovered from early morning lows.
Ending a long and severe long recession, Hong Kong's economy grew at the fastest pace in more than a decade in the first quarter of 2021. GDP grew 7.8 percent from a year earlier, in contrast to the decrease of 2.8 percent in the fourth quarter, underpinned by robust exports.
European stocks struggled for traction on Tuesday as technology shares continued to weigh on equities, as focus shifts to reopening trades and evidence that manufacturers were struggling to source supplies boosted commodities and materials producers.
Nifty has come under pressure as India's official tally of coronavirus infections surged past 20 million, Indian Premier League cricket tournament has been suspended with immediate effect and Corporate management commentary remained cautious on Q1 performance due to lockdowns. Fears of stricter lockdowns also brought caution amongst traders. 14416-14634 is the band for the Nifty over the near term.