Positive start on cards; mid-caps & small-cap stocks likely to be in buzz!
On the back of optimism about the resumption vaccine trial and positive cues from Asian peers, SGX Nifty is indicating that the Indian markets are set to kick off the week on a positive note and most importantly, it will try and build on last week’s gains.
SGX Nifty is trading up by 44 points at 11,498.50 levels. Nifty has stiff resistance placed in the zone of 11,565-11,585 and as long as it trades below this resistance level, we do not expect a runaway rise in the markets. Having said that, the markets would be in full action today after SEBI announced new regulations for multi-cap funds. To make sure that the multi-cap schemes remain true to their tag watchdog SEBI, it has been made mandatory for multi-cap funds to invest 25 per cent each in large, mid and small-cap stocks. In the current scenario, the multi-cap funds have exposure to large and mid-cap, which is in compliance with the new regulations but are underweight on small-caps so, this segment of the market could see a lot of buzzes. However, on Sunday, SEBI clarified that MFs have the choice to meet the condition of the circular based on the preference of their unitholders. Or else, they can switch to other schemes, merge their multi-cap scheme with their large-cap scheme or convert their multi-cap scheme to another category.
On the economic data front, market participants would look forward to CPI and WPI inflation data, which is set to release today. All-in-all, it is going to be an action-filled day on the D-Street!
Asian indices were buoyant during the early trade on Monday despite the mixed cues from Wall Street on Friday. The key catalyst for the optimism this morning was the news that AstraZeneca has resumed clinical trial of their proposed vaccine for Coronavirus after receiving approval from safety regulators. Japan’s Nikkei jumped 0.72 per cent and was trading above 23,500 mark, Hong Kong’s Hang Seng was up by 0.61 per cent and traded above 24,600 mark while China’s Shanghai Composite added 0.53 per cent and was trading at 3,277.50 mark.
The final trading session of the week on D-Street was listless as the markets oscillated in a narrow band and ended the day with minuscule gains. Nifty and Sensex added 0.13 per cent and 0.04 per cent, respectively. The broader indices outperformed the frontline gauge with Nifty Mid-cap and Small-cap gaining 0.68 per cent and 0.27 per cent, respectively. On the sectoral front, Nifty IT and Nifty Realty were the top gainers while Nifty Media was the top loser.
On Wall Street, US stocks lacked a clear direction on Friday as a result of which, indices ended the day on a mixed note. Dow outperformed its counterparts as it had advanced 0.5 per cent followed by S&P 500 which ended just above the neutral line. While the tech-laden Nasdaq slipped 0.6 per cent. On the economic front, the Consumer Price Index came in hotter than expected. Meanwhile, the majority of the European indices ended in green with modest gains.