Daily Markets - Oct 27, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices regained some of the previous session losses on Oct 27. At close the Nifty was up 121.60 points or 1.03% at 11,889.40. In the process the Indian markets outperformed all the other Asian markets. Possible fund inflows due to the MSCI rejig kept the sentiments buoyant in India.

Morgan Stanley expects MSCI India to see passive inflows worth $2.5 billion, and its weight in MSCI Emerging Market to increase to 8.7% from 8.1%. Also as per UBS AG and State Street Global, Indian stocks provide a good hedge in portfolios ahead of the U.S. presidential election, thanks to a domestically-oriented economy.

Volumes on the NSE were higher than recent averages. Banks, Pharma and FMCG were the sectors that gained the most while IT and PSU bank indices lost the most.

Shares slipped in Asia on Tuesday due to surging coronavirus cases and waning hopes for U.S. economic stimulus. Data out of Asia was mixed with South Korea's relatively strong showing which reflected a better than expected 1.9% economic growth in the last quarter, following a 3.2% quarterly decline in April-June. China's industrial firms rose at a slower pace in September, hurt by factory-gate deflation and rising raw materials costs.

Nifty bounced up on Oct 27. The next band of resistance for the Nifty is 11942-11975. Negative advance decline ratio suggests caution in the broader market and possibility that the positive sentiments arising out of MSCI rejig may not last long.

Source : Equity Bulls

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