Saturday, July 10, 2021

Metal, pharma stocks help Sensex overcome initial weakness: Key factors driving market – ET HealthWorld


Benchmark indices wobbled in early trade on Tuesday but gained some ground as trade progressed thanks to buying in metal and pharma stocks. Firm global cues supported the market sentiment.

A significant fundamental factor from the market perspective is that the US and China are leading the global economic recovery, which will translate into earnings growth particularly in emerging markets like India, said an analyst.

“IT has been outperforming on the back of clear earnings visibility. IT index is likely to come under selling pressure after Q4 results since there has been significant speculative buying anticipating good results. While rising Covid cases is a matter of concern, it is unlikely to have a major economic impact,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

FACTORS DRIVING MARKETS
Good News

  • Dollar, yields fall: The dollar slumped to an almost two-week low versus a basket of rival currencies, while US Treasury yields also fell as investors paused recent selling of government bonds.
  • Uniformity in tax rate? US Treasury Secretary Janet Yellen said on Monday that she is working with G20 countries to agree on a global corporate minimum tax rate.
  • Money to remain cheap? The Federal Reserve should stick to its easy monetary policy to help support growth further, Cleveland Federal Reserve Bank President Loretta Mester said on Monday.

Bad news

  • Covid cases: Maharashtra, Chhattisgarh, Karnataka, Uttar Pradesh, Delhi, Tamil Nadu, Madhya Pradesh and Punjab have shown a steep rise in daily Covid-19 cases, accounting for81.90 per cent of the 1,03,558 new cases reported in a span of 24 hours. India’s total active caseload has reached 7,41,830 and now comprises 5.89 per cent of the country’s total infections, the data stated.

How are the blue chip stocks doing?
Benchmark indices strengthened their lead after initial choppiness. At 9:36 am, BSE flagship Sensex was up 360 points or 0.73 per cent at 49,519. NSE benchmark Nifty followed, gaining 96 points or 0.66 per cent to 14,734.In the 50-share pack Nifty, JSW Steel was the biggest gainer, up 3.27 per cent. Power Grid, M&M, Cipla, IndusInd Bank, Tata Motors, Bajaj Finance, NTPC and Hero MotoCorp were among other gainers.

Britannia was the top loser in the pack, down 0.33 per cent. Titan and HCL Tech were other losers in the pack.

Broader markets
Broader market indices traded with gains, looking better positioned than their headline peers in morning deals. Nifty Smallcap was up 0.87 per cent while Nifty Midcap added 0.74 per cent. The broadest index on NSE — the Nifty 500 — was up 0.59 per cent.

SAIL, Adani Total Gas, Laurus Labs, Hindustan Copper, Future Retail and Thyrocare Technology were gainers from the space while Fortis Healthcare, Mahanagar Gas, Gujarat Gas, Century Ply, Westlife Development and Trident were under selling pressure.

Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.4 per cent to a two-week high, while Tokyo’s Nikkei loitered just short of a two-week peak. The Dow and S&P 500 had closed at record peaks on Monday.

European markets, which have been shut since Thursday’s close, were also poised for gains with DAX futures up 1.2 per cent, EuroSTOXX 50 futures 1 per cent higher and FTSE futures up 0.8 per cent.

S&P 500 futures were steady.





Source link

Stay Connected

1,605FansLike
11,000FollowersFollow
342FollowersFollow
775FollowersFollow

Latest Articles

Covid’s second wave proves lethal for pregnant women

At SVP Hospital in Ahmedabad – one of the major Covid-19 hospitals of the city – 148 pregnant women with Covid-19 infection were admitted...

7 Tips to Keep Your Gut Healthy

This is common to say health (and illness) starts in your gut. If you have poor gut health, you’ll experience anything from wrinkled skin, to...

SII making first batch of Covovax: Poonawalla

The first batch of Covovax, a Covid-19 vaccine developed by Novavax Inc, is being manufactured at the Serum Institute of India's Pune facility, SII...

Sputnik V is safest among all Covid-19 vaccines, no deaths recorded: Buenos Aires study

A study by the Buenos Aires Ministry of Health to monitor the safety of the Sputnik V vaccine against Covid-19 confirmed on Thursday that...

Telangana caps Covid treatment charges in private hospitals

Hyderabad: The government of Telangana on Wednesday issued orders fixing treatment and investigation charges for Covid-19 in private hospitals.The state government, which had capped...