Daily Markets - May 17, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark equity indices rose on May 17 aided by upmoves in Banks, and Auto stocks. Nifty opened higher and kept rising through the day without any sizeable intra day correction. At close, the Nifty was up 245.40 points or 1.67% at 14923.20. This was the best single day gain in the index in more than a month.
Volumes on the NSE were in line with recent averages. Among sectors, Banks, Metals, Auto, Realty and Power were the main gainers while Telecom was the loser.
Global stocks traded mixed on Monday after China reported consumer spending grew more slowly than expected in April. Investors weighed risks to the outlook including inflation and a spike in Covid-19 cases in some parts of the world. Markets in Asia-Pacific were mixed as investors monitored Chinese economic data and Covid cases in countries such as Taiwan. European stocks edged lower on Monday, as investors weighed signs that COVID-19 infections are continuing to spread in Asia, even as fears about inflation appear to have subsided.
Wholesale inflation in India reached a massive 10.49 percent in April (highest in 11 years) as the constant rise in cost of fuel, including petrol, LPG and high speed diesel percolated down into the economy. This compares with 7.39% rise in March.
Nifty rose sharply and ended almost at the intra day high. The next stop on the upside is 14966-15044 band. A breach of this band could lead to a challenge to the all time highs of the Nifty (15432). On falls 14824-14850 band could provide support. A healthy advance decline ratio suggests return of confidence of traders in the broader markets.