Daily Market Commentary - June 17, 2021 - Bonanza Portfolio
(Time Zone: UTC)
Mr Vishal Wagh, Research Head
On Thursday Indian equity benchmarks made gap-down opening tracking weakness in global peers. But, soon markets managed to trim most of their losses and are trading lower with marginal cut in early deals. Selling in Power, Bankex and Metal stocks kept markets under pressure whereas buying in Oil & Gas, Realty and Energy counters kept the downside in check. In the afternoon session, Indian equity benchmarks continued their weak trade due to weak global cues. Both Sensex and Nifty are trading around 52,245 and 15,669 levels.
Most of the Asian equity benchmarks traded lower in early deals on Thursday, weighed down by the continued surge in covid-19 new infections and ambiguity in the global economic rebound. Additionally, the US Federal Reserve's indication that it might raise interest rates at a much faster pace than assumed sidelined some investments amid assumptions that early US rate hikes might suck funds out of riskier assets.
The Reserve Bank of India (RBI) in its 'State of the Economy' report June bulletin has said that it sees reasons to be cautiously optimistic as the second wave of the pandemic seems to have hit domestic demand, while other economic indicators show the economy is coming back on stream.
In Nifty 50 top gainers Ultratech Cement Ltd, Asian paints Ltd, Tata Consumer Products Ltd, Shree Cement Ltd and HDFC Life Insurance Company Ltd. The losers are Adani Ports and Special Economic Zone Ltd, Hindalco Industries Ltd, Indusind Bank Ltd, Coal India Ltd and Maruti Suzuki India Ltd.