Daily Markets - July 14, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian benchmark equity indices had their biggest single-day drop since early-June, tracking weakness in Asian peers. The NSE Nifty 50 index ended 1.79% lower at 10,609.

Volumes on the NSE were on the lower side with Banks, Metals and Auto stocks underperforming while Pharma stocks did well. The India Volatility Index ended higher for the third straight day, ending 5.7% higher at 26.7.

This was the biggest single-day gain for the Volatility Index in two months.

Indian Wholesale prices fell by -1.8% YoY (higher than expectations) in June, as a severe demand crunch and sharp fall in international commodity prices weighed on wholesale inflation.

Shares fell in Asia on Tuesday as skepticism set in about the recent upward momentum in global markets given rising confirmed coronavirus cases and percolating tensions between the U.S. and China.

European stocks were hit by a selloff in technology shares on Tuesday, after a drop overnight on Wall Street following fears of new coronavirus restrictions and a flare-up in U.S.-China tensions. Washington on Monday rejected China's disputed claims to offshore resources in the South China Sea, a move that Beijing criticised as inciting tensions in the region. Coronavirus fears also persisted in Asia with Hong Kong set to impose strict social distancing measures from Tuesday.

Technically, Nifty has shown weakness after a long time. On downmoves, it could take support at 10484.

Source : Equity Bulls

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