Daily Market Wrap - Sep 13, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Nifty closed mildly down in a narrow band of closings over the past four days on the first day of the trading week on Sept 13. Nifty opened flat and sold out in the first hour of trade. After making an intra day low at 1005 Hrs, it started to rise gradually. At close, Nifty was down 14 points or 0.08% at 17355.
On a day when the volumes on the NSE continued to be lower than recent averages, Metals, Utilities and Realty indices gained the most while Energy, Consumer Durables and Bank indices fell the most. Small and midcap indices ended in the positive.
Monsoon rainfall increased over the past fortnight, with precipitation in September 53 percent above normal so far. That has helped reduce the cumulative rainfall deficit between 1 June and 12 September to 6 percent of the long-period average. Regional distribution of the monsoon improved over the past fortnight.
Asian stocks started the week, slipping to 2-1/2 week lows on further signs of accelerating inflation as well as tax and regulatory pressures on the world's biggest companies. Japan reported its wholesale prices were near a 13-year high in August, adding to concerns over inflation as the country prepares for a leadership transition. European stock markets rose after Federal Reserve officials said the US economy had recovered enough from the pandemic for emergency financial stimulus to be dialled down, boosting shares in sectors seen to benefit from GDP growth and higher interest rates.
A market gauge of euro zone inflation expectations rose to its highest since mid-2015 on Monday in a further sign that investor perceptions over the direction of future inflation is shifting. A Deutsche Bank survey found market players expect a 5-10% equity market correction by year-end, with COVID, lower than expected economic growth and inflation seen as the main risks.
Nifty continues to close in a narrow band of 17353-17378 over the past 5 sessions. This reflects lack of enthusiasm on the part of sellers to sell aggressively while buyers keep nibbling at individual stocks. Advance decline ratio continues to be positive. 17254-17437 is the band for the near term for the Nifty.