Daily Markets - May 5, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
India benchmark equity indices rose on May 05 after the RBI announced measures to further support the economy as coronavirus cases continue to surge. A late surge in the markets post 1415 Hrs led the indices higher. At close the NSE Nifty 50 rose 0.84% or 121 points to 14618.
Volumes on the NSE were in line with recent averages. Among sectors, Healthcare, Banks and Metals were the main gainers while Realty was the loser.
Global shares edged up on Wednesday as U.S. stock futures steadied after a pullback in tech favourites while European markets were buoyed by accelerating business activity and positive earnings. MSCI's broadest index of Asia-Pacific shares ex-Japan sank 0.4% for its fourth consecutive day of losses, although Asian trading was thin due to holidays in Japan, China and South Korea.
Euro zone business activity accelerated in April as the bloc's dominant services industry shrugged off renewed lockdowns and returned to growth. IHS Markit's final composite Purchasing Managers' Index (PMI), climbed to 53.8 last month from March's 53.2. A PMI for the service industry rose to 50.5 from 49.6, pipping the flash 50.3 estimate. The composite input prices index jumped to 64.0 from 61.9, its highest in 10 years.
S&P Global Ratings on Wednesday slashed India's GDP growth forecast for the current financial year to 9.8 per cent saying the second COVID wave may derail the budding recovery in the economy and credit conditions. It in March had a 11 per cent GDP growth forecast for India for the April 2021-March 2022 fiscal on account of a fast economic reopening and fiscal stimulus.
A gauge of India's services sector fell to the lowest in three months, but remained in the expansion zone and above the long-run average. The India Services Business Activity Index, compiled by IHS Markit, stood at 54 in April compared with 54.6 in March 2021. The Composite PMI Output Index, too, dropped to 55.4 from 56 in March.
Nifty formed an inside day on May 05, meaning that the high low range for the day was within the high low range of the previous day. However the Nifty closed near its intra day high. Advance decline ratio too became positive. 14461-14723 continues to be the range for the Nifty in the near term. In case we do not see a negative day tomorrow, then we may have seen a near term bottom at 14416 on May 03.