Daily Market Commentary - June 7, 2021 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

On Monday Indian equity benchmarks made a positive start amid optimism over the unlocking of the economy. But, mixed global cues weighed down on the domestic markets which dragged the markets down. Domestic indices are trading flat with positive bias in early deals on account of buying in Utilities, Metal and Power counters. The rapid fall in fresh Covid-19 infection cases supported the markets. In the afternoon session, Indian equity benchmarks continued to trade in positive terrain as economic activity is likely to gather momentum as most states are gradually opening up since fresh COVID cases have fallen. Both Sensex and Nifty are trading around 52,347 and 15,760 levels.

Asian equity benchmarks traded mixed in early deals on Monday, as the investors got cautious after Janet Yellen's higher interest rates and ahead to this week's US inflation report. Weaker than expected Chinese trade data for the month of May, continued coronavirus fresh outbreaks and the lingering concerns over economic health dulled the sentiments.

Reserve Bank of India (RBI) Governor Shaktikanta Das has said that banks and non-banking financial companies (NBFCs) need to strengthen their capital position because there could be stress due to the second wave of COVID-19.

In Nifty 50 top gainers Adani Ports and Special Economic Zone Ltd, NTPC Ltd, Tata Motors Ltd, Shree Cement Ltd and Power Grid Corporation of India Ltd. The losers are Bajaj Finance Ltd, Bajaj Finserv, Housing Development Finance Corporation Ltd, Dr. Reddy Laboratories Ltd and Divi's laboratories Ltd.

Source : Equity Bulls

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