Daily Market Wrap - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark equity indices bounced up on June 10 after a down previous day. Nifty opened higher and kept inching upwards through the day. At close, the Nifty was up 102.40 points or 0.65% at 15,737.80.
Volumes on the NSE were below recent averages. Among sectors, Realty, Metals, Telecom and Healthcare gained the most while Auto ended marginally in the negative. BSE Midcap and Smallcap indices rose 1 percent each.
Asian shares edged higher but held their recent trading range on Thursday as investors focussed on U.S. inflation data and the risk of an upside surprise that could prompt the Federal Reserve to start tapering its massive stimulus. The market is buying into the Fed's view that the rise in prices is transitory and the Fed will not alter its policy guidance at next week's FOMC meeting. Chinese shares gained ground after central bank Governor Yi Gang said inflation is "basically under control", and monetary policy would be kept steady. Stock markets in Europe were fairly muted on Thursday morning as traders await the European Central Bank (ECB) releasing its latest monetary policy decision, and giving its view on the eurozone recovery. Bitcoin surged more than 10.5% on June 10 at 1600Hrs IST.
Nifty tried to claw back the lost ground with most action concentrated in non-index stocks. Lower volumes in the market and sharply higher advance decline ratio suggest that institutional activity has reduced while the non-institutional players have increased their bets based on the recent gains in the broader markets seen. Lack of supply across the markets even at higher prices is emboldening the traders. Nifty could now edge up towards the recent high of 15800 while 15622 could offer support.