Daily Markets - May 7, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark indices rose for the third consecutive session on May 07. The Nifty opened gap up but corrected soon thereafter. After making an intra day low at 1315 Hrs, it again began to rise. At close the Nifty rose 0.67% or 98 points to 14823.
Volumes on the NSE were higher than recent averages. Among sectors, Metals and power were the main gainers while Consumer Durables and IT were the main losers. Metal stocks rose sharply on encouraging news from China.
Global stocks headed for their first weekly gain in three weeks amid positive Chinese data and a surge in commodity prices, while traders braced for a U.S. jobs report later on Friday that could provide clues on when the Federal Reserve will ease back on monetary stimulus. Economists expect the April jobs data to show employers hired 975,000 workers last month as the economy accelerated out of the pandemic and vaccines rolled out nationwide. The unemployment rate is expected to drop to 5.8% from 6%.
China's exports grew more than expected in April as global demand remained strong, data from the General Administration of Customs revealed today. Exports advanced 32.3 percent on a yearly basis in April while economists had forecast the growth rate to ease to 24.1 percent from 30.6 percent posted in March. Likewise, imports surged 43.1 percent from the previous year versus the expected growth of 42.5 percent.
India is likely to breach its fiscal deficit target (6.8%) in the financial year to March 2022 mainly due to revenue shortfall, Fitch Solutions said Friday. Fitch Solutions forecasts the Indian central government deficit to come in at 8.3 per cent of GDP in FY22.
The second wave of coronavirus infections forcing localised or state-wide restrictions poses a downside risk to economic activity in the first quarter of the ongoing financial year, according to the Department Of Economic Affairs. The momentum in economic recovery since the first wave has moderated in April, it said in a monthly newsletter.
Nifty gained 1.3% over the week, gaining for the second consecutive week. A short term bottom has been made at 14416. Advance decline ratio remains positive amidst rotational stock specific buying. 14979-15044 now becomes the next resistance for the Nifty while 14611-14634 becomes the support. Upward momentum in the markets could continue in the early part of the coming week.