Daily Market Wrap - Sep 8, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty recovered smartly from the mid-day selloff to close almost flat on Sept 08. Nifty opened flat and remained in a range till noon. A sharp fall ensued later and the Nifty made an intra day low at 1310 Hrs. A smart recovery followed at the Nifty closed 0.03% or 6 points higher at 17368.

On a day when the volumes on the NSE were just below recent averages, Power & Bank stocks rose the most, while IT and Auto indices fell the most. BSE Smallcap/Midcap indices outperformed the Nifty rising 0.55-0.81%.

Union Cabinet announced Rs 10,683 crore PLI for Man Made Fibers & technical textiles over 5 years. The new PLI proposes to incentivise eligible manufacturers by paying between 3 percent and 11 percent incentive on incremental production. It has two categories of investments above Rs. 100 crore and Rs. 300 crore.

Inflows in equity funds dipped sharply, from Rs 22,583 crores in July 2021 to around 8,666 crores for the month of August. Debt funds, on the other hand, saw an extremely steep fall in their monthly inflows, falling to merely Rs 1,074 crores in the month of August 21, from a high of Rs 73,694 crores. Cumulative Mutual Fund SIP accounts reached a stellar 4.32 crores in August 2021. This was a monthly rise from the previous month's figure of 4.17 crores. August 2021 also saw all-time high SIP inflows worth Rs 9,923 crores for August 2021 from the amount collected via them for the month of July, which stood at Rs 9,609 crores.

According to data from the retail intelligence platform, the FMCG industry sales declined by 14.5 percent in August month-on-month. The government has increased the MSP of Rabi crops for 2022-23, to ensure remunerative prices to the growers for their produce.

Asian shares snapped eight successive sessions of gains on Wednesday, as fresh worries about slowing global growth prompted investors to reduce their exposure to riskier assets in a boost to safe-havens such as the U.S. dollar. European stocks retreated on Wednesday, reflecting cautious trade in global markets amid nervousness over economic growth and resurgence in Covid cases. European investors are also erring on the side of caution ahead of Thursday's European Central Bank meeting.

Nifty made a lower low compared to the previous two sessions but closed flat to mildly higher. This means sell-offs are being bought into. Also advance decline ratio improved to much above 1:1 denoting some return of confidence by the participants. 17254-17437 could be the trading band for the Nifty over the next few sessions.

Source : Equity Bulls

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