Daily Markets - Sep 1, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices on Sept 01 partly recovered Monday's losses, ending a volatile trading session with gains. The Nifty 50 index ended 83 points or 0.73% higher at 11,470.

Volumes on the NSE were in line with recent average despite the new margining system that was rolled out today. Metals, Pharma, FMCG and Media indices ended in the positive while IT and Banks underperformed.

Globally stocks started September on a positive note, with global indexes close to all-time highs and Europe edging higher, pushed up by encouraging PMI numbers across the globe. PMI number for August came in at - Euro (51.7 vs 51.8 for July), UK (55.2 vs 53.3 in July), Caixin China (53.1- highest since 2011 vs 52.8 in July), India (52 vs 46 in July).

The Indian rupee opened higher and bond yields fell sharply after the Reserve Bank of India stepped in with steps to keep market interest rates in check and gave a rare signal that it may be comfortable with a stronger currency.

The Supreme Court ordered telecom companies to pay their pending statutory dues worth thousands of crores over 10 years, in a relief to the sector yet to recover from the tariff war unleashed by Reliance Jio Infocomm Ltd.

Amidst few macro and judicial developments, Indian markets managed to post a rise despite the apprehensions on impact on volumes due to the new margining system coming into force from Sept 01. More clarity about the impact will be seen over the next few days when there are fewer developments to track and discount.

Source : Equity Bulls

Keywords