Daily Markets - June 7, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices ended higher at another record high on June 7 after a range bound session. A late surge post 1250 Hrs resulted in the Nifty ending in the positive after being in a narrow 95 point band through the day. News about gradual reopening of economy following the fall in Covid cases boosted sentiments. At close, the Nifty was up 81.40 points or 0.52% at 15751.70.

Volumes on the NSE were higher than recent averages. Among sectors, Power, Oil & Gas, FMCG, Telecom and IT were the main gainers while Realty and Metals ended in the negative. BSE Midcap and Smallcap indices rose 0.8-1.4 percent.

Oil in New York hit $70 a barrel for the first time since October 2018 as upbeat comments on the market from major trader Vitol Group added to optimism over the global demand recovery.

Asian shares turned sluggish on Monday as relief over a benign U.S. jobs report was offset by caution ahead of key inflation data, while a coronavirus outbreak in Taiwan took an increasing toll on hard-pressed chip makers. European stocks edged back from record levels on Monday, easing from all-time highs with commodity shares leading declines as sentiment soured after weaker-than-expected China trade data and worries about inflation.

Data out of Beijing showed China's imports grew at their fastest pace in 10 years as it sucked up resources, a boon for everything from copper to iron ore prices. China's exports in dollar terms in May grew 27.9% from a year earlier, slower than the 32.3% growth reported in April and missing analysts' forecast of 32.1%. Imports increased 51.1% on year last month in dollar terms, the fastest growth since January 2011 but slower than the 51.5% rise tipped by the Reuters poll.

Nifty has once again closed at an all time closing high accompanied by sharply positive advance decline ratio. High volumes on a positive day is good news. Continued flow of positive news on Covid front could help sustain this upward momentum. 15630-15840 is the new band for the Nifty for the near term.

Source : Equity Bulls

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