Daily Markets - June 3, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices once again ended at record closing high on June 3. Nifty opened higher on the back of Asian cues, dipped gradually to form an intra day low at 1325 Hrs and rose once again. It closed almost at the intra day high. At close, the Nifty was up 114.20 points or 0.73% at 15690.40.

Volumes on the NSE were in line with recent averages. Among sectors, Reality, Consumer Durables, Oil & Gas and Capital Goods indices rose the most. There were no losers. BSE Midcap also touched a record high with a percent gain and Smallcap index gained 1 percent.

World stocks clung close to record highs on Thursday as investors weighed inflation concerns ahead of key monthly U.S. jobs report scheduled for release on Friday, while oil prices rose for a third straight session. Economists expect the report to show employment jumped by 664,000 jobs in May after climbing by 266,000 jobs in April. The unemployment rate is expected to dip to 5.9 percent from 6.1 percent. European stock markets opened in the red on Thursday after reports that UK ministers are considering delaying its final stage of reopening by two weeks if hospitalisations and deaths increase.

U.S-China tensions were also on investors' radars as U.S. President Joe Biden will reportedly sign an amended order later this week that bans U.S. investment in a list of companies for their connection to China's defense and surveillance technology sectors.

A gauge of India's services sector contracted for the first time in eight months amid a deadlier second wave of the Covid-19 pandemic. The India Services Business Activity Index, compiled by IHS Markit, stood at 46.4 in May compared with 54 in April. The Composite PMI Output Index, too, dropped to 48.1 from 55.4 in April.

Nifty once again closed at a fresh record high on June 03 after opening with a gap-up. Sectoral rotation is back in focus. On Friday, week end considerations could result in some profit taking at these or higher levels. Outcome of RBI's credit policy meet can impact Banking and other sectors though expectations are subdued therefrom. Advance decline ratio continues to be very positive. 15771-15598 could be the band for the Nifty in the near term.

Source : Equity Bulls

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