Daily Markets - Nov 4, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices had a wild and volatile day on Nov 04 with alternate bouts of buying and selling. At close Nifty gained 95 points, or 0.80 percent, up at 11,908.50. Nifty formed a triple top in the 11920-11930 band.

Volumes on the NSE were just above the recent average. Among sectors, Pharma, IT and Banks were the main gainers while Realty ended in the negative.

Global markets were volatile as early results from the U.S. presidential election proved far closer than polls had predicted, potentially leaving the outcome in doubt for days to come. Investors had initially wagered that a possible Democratic sweep by Biden could ease political risk while promising a huge boost to fiscal stimulus.

European markets slid at the open on Wednesday, shortly after Donald Trump prematurely claimed he had won the US election despite millions of votes remaining uncounted in a tight race. Trump played the voter fraud card which unsettled markets as a long and protracted battle in the courts is precisely what investors do not want. Later Biden regained lead resulting in European markets bouncing up from early weakness.

Analysts have said a Biden victory could weaken the dollar and lift trade-exposed currencies, as it is expected to adopt a less combative stance on the region's economic engine, China, and a steadier foreign and trade policy overall.

A gauge of India's services sector moved back into the expansion zone for the first time in eight months as economic activity continues to pick up on easing lockdown curbs. The India Services Business Activity Index, compiled by IHS Markit, stood at 54.1 in October compared with 49.8 in September.

Nifty has closed at the highest since Oct 23 and is just 118 points away from making a recent high. This does not seem difficult despite the uncertainty over the final outcome of US Presidential elections.

Source : Equity Bulls

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