Daily Markets - July 21, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian equity benchmarks continued to rise for the fifth consecutive day on July 21. At close, the Nifty was up 140.10 points or 1.27% at 11162.30. Benchmark indices remained at their highest level since March 5, 2020. The Nifty 50 index has closed up in 12 out of the last 17 trading sessions. Broader markets underperformed in today's session.

Volumes on the NSE were sharply higher showing wide participation among stocks. PSU stocks (on the back of divestment process gaining momentum), Reliance media companies, Banks, Cement and Auto stocks witnessed buying interest, while Bajaj Finance and Bajaj Finserv corrected post not- so-encouraging results from Bajaj Finance. FMCG, Pharma and Media stocks also underperformed.

Asian shares were mostly higher Tuesday on rising hopes for an effective vaccine to fight the coronavirus pandemic. European stocks climbed to a four-month high and German equities erased losses for the year after leaders agreed on a landmark recovery plan. EU leaders clinched a deal on €750B recovery fund. The recovery fund will be available from January 2021 and there will be no new bridge financing until then. In addition to the recovery fund, the EU said its next budget, which will fund initiatives between 2021 and 2027, will total €1.074T.

Markets have closed well for the 5th consecutive session gaining 550+ points in the process. While momentum shows some more upside in the offing, lack of correction suggests caution and mild profit taking.

Source : Equity Bulls

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