Market Commentary

Daily Markets - Aug 17, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities



Posted On : 2020-08-17 19:45:07( TIMEZONE : IST )

Daily Markets - Aug 17, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian equity benchmark indices rose on the first day of the week on Aug 17 even as the gains came in the last 1.5 hours of trade. At close the NSE Nifty 50 was up 0.61% or 69 points at 11,247.

Volumes on the NSE were below recent average with Banks, Auto, Media and Metal stocks outperforming while Pharma and PSU Banks indices were down.

European stocks mostly reversed early losses to trade higher after China delivered a bigger than expected boost to short-term liquidity for its financial system and thanks to positive expectation regarding the upcoming review by Washington and Beijing of their phase one trade deal. Overnight, the People's Bank of China injected 700bn yuan via one-year loans into the country's financial system, which was more than forecast. A retightening of Covid-19 measures in Italy was contributing to Europe's groggy start.

Japanese stocks sank while other Asian markets gained Monday after Japan reported a record economic contraction as the coronavirus pandemic weighed on retailing, investment and exports. Investors in Asia looked ahead to central bank meetings this week in China, Indonesia and the Philippines, with few other market-moving events in sight.

Nifty broke upwards post 2 pm aided by recovery in Banking stocks and closed with a gain on below normal volumes. Select mid and smallcap stocks performed well. 11370 on the Nifty remains a key resistance.

Source : Equity Bulls

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