Domestic benchmark indices surged on Wednesday recouping all losses suffered on Tuesday, only to give up almost all gains and end just a tad bit higher than the opening levels.
Domestic benchmark indices surged on Wednesday recouping all losses suffered on Tuesday, only to give up almost all gains and end just a tad bit higher than the opening levels. S&P BSE Sensex ended the day at 36,051 points after gaining 18 points during the day’s session, while the 50-stock Nifty managed to stay above the 10,600 mark. “Technically, with the Nifty selling off sharply from the highs of the day, the bears do seem to have an upper hand. Further downsides are likely once the immediate support of 10577 is broken. Any pullback rallies could find resistance at 10712,” said Deepak Jasani, Head Retail Research, HDFC Securities.
SGX Nifty muted: Sensex and Nifty stare at a flat opening with SGX Nifty giving up gains and going down 19 points.
Global markets: In the United States, stock markets ended on a positive note with Down Jones, S&P 500, and NASDAQ ending with gains. However, Thursday morning did not look too pleasant for Asian peers that were down in the red. Shanghai Composite went down 1.4% while Hang Seng slipped 1%. Topix was trading flat but Nikkei 225 was down 0.39%. Share markers in South Korea were also down close to 1% each.
Macro indicators: In June India’s goods trade balance has hit an all-time high, coming at a surplus of $0.79 billion. “The persistent improvement in the trade balance has been driven by a faster recovery in exports, while import demand remains very weak, given anemic domestic demand. For Q2 20, the cumulative goods trade balance came in at $ 9 billion, which is the highest it has been since Q1 06,” Barclays said in a report. The surplus is unlikely to sustain.
Vaccine hopes: An experimental COVID-19 vaccine, which is under development by pharma major Moderna and the US National Institutes of Health has shown positive signs, giving investors hope. “Both global and domestic sentiments were positive (on Wednesday) over hopes of a COVID-19 vaccine as two contenders began human trials in India and one US-based candidate successfully completed the initial phase of human trials,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.
Results today: Bajaj Consumer Care will be reporting its April-June quarterly results today. L&T Finance Holdings and L&T Technology Services will also be informing investors of how their businesses performed during the peak of the lockdown. Cyient and Minda Corporation, are also due to post their results today.