Daily Markets - May 11, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
The Indian benchmark equity indices broke a four-day winning streak on May 11. Nifty opened gap down due to weak global cues, but inched up gradually through the day with some volatility. At close the Nifty50 was down 0.61% or 91.60 points to 14,850.75.
Volumes on the NSE were above recent averages. Among sectors Oil & Gas, Power were the main gainers while Metals, IT and Banks were the main losers.
Asian stock markets are sharply lower in deep red on Tuesday, following the broadly negative cues overnight from Wall Street as the outlook for inflation weighed on the markets amid an increase in commodities prices. European stock markets traded sharply lower Tuesday, following the previous session's tech-led selloff on Wall Street ahead of the latest reading on U.S. consumer prices, which many fear could prompt the Federal Reserve to rethink its monetary policy stance.
Rising inflation threatens the long-term revenue outlook of tech stocks, which underpins their valuation. Record high prices for commodities, including iron ore and copper, have also triggered anxiety over inflation, leading the rest of Asian markets to also fall. The run-up in commodity prices has stoked fears of the U.S. Federal Reserve tightening its monetary policy much sooner than expected.
April marks the second consecutive month of net inflows for open-ended equity schemes at Rs 3,437 crore, but it fell from Rs 9,115 crore inflow in March, according to data released by the Association of Mutual Funds in India. Contributions to systematic investment plans stayed buoyant at Rs 8,591 crore versus Rs 9,182 crore inflow in March. (March numbers included flows of last two days of February).
Nifty fell but did not close at the intra day lows. In fact Nifty was among the most outperforming indices across Asia having fallen among the least. Advance decline ratio continues to be positive suggesting broad-based buying in the markets. The fact that May 10 was the first day in recent times when the total Covid cases fell in India helped sentiments improve. 14744-14892 is the band for Nifty in the near term.