Daily Market Wrap - Sep 1, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty ended a 3 day winning streak on Sept 01 and ended on a negative note after hitting record levels in the early trade. At close, the Nifty was down 55.90 points or 0.33% at 17076.30.

On a day when the volumes on the NSE were higher than the recent average, Realty, Power, Capital Goods and Consumer Durables indices did well while Metals and IT indices lost the most. BSE midcap and smallcap indices ended in the green.

Asian stock markets were mixed Wednesday as investors weighed the economic impact of the spread of the coronavirus's delta variant. European stocks edged closer to record highs on Wednesday as manufacturing PMI surveys improve in Europe and as fresh signs of weakness in Asian economies were offset by hopes for more stimulus, while investors shook off concerns about rising inflation. Factory activity across the Asian region lost momentum in August, spurring hopes of more stimulus from central banks. European markets appear to have digested hawkish comments from European Central Bank officials signalling they're laying the groundwork to cut back pandemic-era bond buying programs.

In India, the monsoon deficit now stands at 9 per cent and this is expected to come down due to good rainfall during September, the IMD said. July too had recorded 7 per cent less rainfall. The country received 24 per cent less rainfall than normal in August, but rainfall is expected to be above normal in September, the IMD said in its forecast for the month. Met Dept expects June-September rainfall at 96% of average against 101% earlier.

The Total GST collection in India stood at Rs 1.12 lakh crore in August 2021 (30 percent higher YoY) against Rs 1.16 lakh crore in July 2021.

India's manufacturing sector activities moderated in August, as business orders and production rose at softer rates due to the pandemic and rising input costs, a monthly survey said on Wednesday. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 52.3 in August, down from 55.3 in July, indicating a softer rate of growth that was subdued and below its long-run average.

ICICI Bank crossed Rs 5 lakh crore in market capitalisation for the first time only to become the second bank to attain the said feat.

Nifty ended the day on Sept 01 with a bearish formation - Dark Cloud Cover. Advance decline ratio too went marginally in the negative. The shift to largecaps seems to have played out for the time being. 17153-17226 could be the resistance band for the Nifty in the near term, 16951 could be a support.

Source : Equity Bulls

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