Daily Market Commentary - July 23, 2021 - Bonanza Portfolio
(Time Zone: UTC)
Mr Vishal Wagh, Research Head
On Friday Indian equity benchmarks made a positive start tracking overnight gains on Wall Street. But, soon markets wiped out all the gains and are trading lower in early deals due to selling in Capital Goods, Industrials and Power stocks. Initially, some support came as Information and Broadcasting Minister Anurag Thakur said the Union Cabinet has approved a Rs 6,322-crore production linked incentive scheme for specialty steel, a move aimed at boosting domestic manufacturing and exports from the sector. In the afternoon session, Indian equity benchmarks were trading firmly in green with a gain of around 0.5%. Both Sensex and Nifty are trading around 53,016 and 15,867 levels.
Most of the Asian equity benchmarks traded in red in early deals on Friday, weighed down by the still lingering worries over the peaking spread of the delta variant of the coronavirus around the globe.
Former World Bank chief economist Kaushik Basu has said that India's wholesale price-based inflation is at a 30-year high, leading to a very alarming situation for the country. He, however, doesn't see any risk of hyperinflation, but cautioned that if retail inflation follows wholesale prices, it might lead to an 'inflationary crisis'.
In Nifty 50 top gainers ICICI Bank Ltd, ITC Ltd, Wipro Ltd, SBI Life Insurance Company Ltd, and Tech Mahindra Ltd. The losers are Tata Motors Ltd, Grasim Industries Ltd, Larsen & Toubro Ltd, Adani Ports, and Special Economic Zone Ltd, and UPL Ltd.