Daily Markets - June 25, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices rose higher for the second consecutive day on June 25 supported by metal and financials. Nifty opened higher, fell in the initial minutes of trade and made a intra day bottom at 1005 Hrs. It later started to rise and closed almost at the intra day highs. At close the Nifty was up 69.90 points or 0.44% at 15860.40.

Volumes on the NSE were low but in line with the past 4 days volumes. Among sectors, Metals, Capital Goods, Banks, Telecom and Healthcare rose the most while Oil & Gas and FMCG fell the most.

Asian shares rose Friday, buoyed by the rally on Wall Street that came after President Joe Biden announced a bipartisan deal on infrastructure spending. European stocks were muted on Friday morning as investors monitored the prospect of a steady economic rebound, fears of a tapering of monetary stimulus and updation by the UK of its travel guidance adding a number of countries to its green list.

The central bank of Mexico unexpectedly raised policy rates to 4.25% yesterday. The decision followed accelerating bi-weekly headline and core inflation during the first fortnight of June of 6.02% and 4.58% respectively.

India Ratings & Research on June 25 cut its forecast for India's gross domestic product (GDP) growth in 2021-22 to 9.6 percent from 10.1 percent earlier due to the outbreak of the second wave of COVID-19.

Nifty once again rose gradually, this time pulled up by Banks and Metal shares. After one negative week, it closed the current week with a gain of 1.13%. The Nifty could remain in the 15901-15761 band for the near term. However it seems likely that a new high in Nifty may be made in the coming week. Action seems limited to a few stocks/sectors on rotational basis and the overall mood in the markets is still not euphoric. This is a good sign that may prevent a fast reversal.

Source : Equity Bulls

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