D-Street to start the week on an unhappy note

After a weekend, market participants on Dalal Street have to deal with global weakness, which is likely to tumble on the Indian markets as well. This is reflected by the early trends in SGX Nifty, as at 7:50 AM SGX Nifty is trading 57.50 points below its prior close. Apart from the negative cues from global peers, markets also have to deal with several grim narratives at the start of the week. Firstly, S&P Global Rating has recently projected that growth is likely to contract by 5 per cent in this fiscal, leading Indian economy in deep trouble. Secondly, rising number of COVID-19 cases in India. Having said that, market might see a kneejerk reaction to this, but looking at the brighter side, markets would take into consideration the number of recoveries in COVID-19 cases exceeding the afflictions.  

All-in-all, it would be a buzzing day of trade on the D-Street. Nifty has a strong support placed at 10,170 levels.

In the last trading session of the week, Wall Street witnessed a sharp fall. This led Asian indices trading in red on Monday.  Japan’s Nikkei 225 is worst hit as it plunged over one per cent followed by Hong Kong’s Hang Seng and China’s Shanghai Composite which are down by 0.62 per cent and 0.45 per cent, respectively.

Asian Markets

Key domestic benchmark indices ended the Friday session in green. However, the session was a roller coaster ride as indices witnessed wild swings before settling at nearly one per cent gain. Sensex closed at 35,171, whereas Nifty settled at 10,383. The broader market indices ended with modest gains. Nifty Mid-cap and Nifty Small-cap added 0.23 per cent and 0.30 per cent, respectively. On sectoral front, Nifty IT gained four per cent followed by Nifty PSU Bank. On flipside, Nifty FMCG declined the most as it slipped 1.18 per cent. India VIX (volatility index), shed four per cent to 28.74.

On Friday, the number of confirmed COVID-19 cases saw a sharp spike in the US, fueling fears that the hope of rebound in economy could be out of the way. This led market participants Wall Street to press the sell button. Post stress test results, Fed suspended stock buybacks and also caps dividends. Due to this, financial stocks saw a sharp sell-off. The Cboe Volatility index leaped 7.79 per cent to 34.73. At closing bell, Dow led the losses followed by tech-heavy Nasdaq and S&P 500. European indices too ended the Friday session in red.

US Markets

Europe Markets

Commodity