US fiscal stimulus seems a distant dream before election; D-Street earnings to pick up steam!

The bulls staged a smart recovery on Tuesday and erased most of the losses registered at the beginning of the week.

Instilling further confidence in the bulls' camp was the comment by India’s Finance Minister Nirmala Sitharaman stating that India may be among the fastest-growing large economies next year while addressing at the Fourth Annual India Energy Forum by CERAWeek.

However, the news from the global front is not pleasing the bulls as the COVID-19 cases continue to surge in the west, and in the US, with the Senate on recess till November 9, fiscal stimulus now seems a distant dream before the election. As a result, SGX Nifty traded down by 40 points at 11,847. Besides, we continued to reiterate that the 20-DMA would act as strong support and unless we decisively breach the 20-DMA, don’t panic!

The market participants are likely to react to the results that were announced on Tuesday after the market hours as well as to the news of Hero MotoCorp & Harley Davidson to be partners for the Indian market. It’s a busy day on the earnings front, as over 60 companies including Axis Bank, Dr Reddy’s, Hero MotoCorp, L&T, RBL Bank, and Marico are scheduled to announce their September quarter earnings today.   

Mimicking their western counterpart, the Asian markets were also seen trading on a mixed note on Wednesday. China’s Shanghai Composite was trading above the neutral line, while Hong Kong’s Hang Seng and Japan’s Nikkei 225 were down by 0.53 per cent and 0.29 per cent, respectively.   

It was a Super Tuesday as Indian markets recorded gains of nearly 1 per cent. After opening the session on a flat note, the key benchmark indices dipped towards Monday’s low, and thereafter, the bulls took the charge in such a way that the key benchmark indices settled near the day’s high. Nifty closed at 11,889 and Sensex reclaimed the 40,500 mark. The broader indices too witnessed buying interest wherein, Nifty Mid-cap surged 1.22 per cent, while Nifty Small-cap added 0.31 per cent. Among sectors, Nifty Private Bank, Nifty Bank, and Nifty Financial Services were the top gainers, while Nifty IT, Nifty PSU Bank, and Nifty Realty ended as the top losers.  

Stocks on Wall Street ended on a mixed note on Tuesday as Coronavirus cases continued to mount. Consumer confidence unexpectedly declined and above all, Senate Majority Mitch McConnell adjourns Senate until November 9, which threw cold showers on fiscal stimulus before the election.

Amidst all this, positive earnings results and reports showing a jump in durable goods orders appeared to be a silver lining in the dark cloud. In the end, Dow and S&P 500 ended in negative terrain, while the tech-heavy Nasdaq advanced 0.6 per cent. The rising virus cases took a heavy toll on the European indices as they logged losses for the second straight day.