Listless start on cards; opportunity knocks door of broader markets & pharma stocks!
On Thursday, Indian markets marked an end to its four-day winning streak. In the early deals, SGX Nifty vacillates near the dotted lines, indicating a listless start.
SGX Nifty is marginally down by 3 points or 0.03 per cent at the 11,889 level. However, in the last trading session, we have seen that the broader markets outperformed the frontline gauges and Nifty Small-Cap Index has already witnessed a breakout of the symmetrical triangle-like pattern. So, traders should keep their focus on broader markets as stocks that are reflecting relative strength and breaking out of the bases could offer good returns in the short-term. Further, pharmaceuticals stocks could be in the limelight after Gilead secures FDA approval for Remdesivir.
Key results to watch out for today are- JSW Steel and Tech Mahindra.
The majority of the Asian indices were trading in the green on Friday amid optimism around the stimulus package in the US. Japan’s Nikkei 225 and China’s Shanghai Composite were trading higher by 0.18 per cent and 0.20 per cent, respectively. While Hong Kong’s Hang Seng was seen moving back and forth near the neutral line.
Indian markets snapped their four-day winning streak on Thursday as indices registered modest losses on the back of feeble global cues. At close, Nifty and Sensex settled at 11,896 and 40,558 down by 0.35 per cent and 0.37 per cent, respectively.
Meanwhile, the movement in the broader market was busy wherein both, Nifty Mid-Cap and Small-Cap added 0.62 per cent and 1.01 per cent, respectively. On the sectoral front, the majority of the sectors ended in red, wherein Nifty Pharma and Nifty IT were the top losers, while on the other hand, Nifty Media and Nifty Metal became the top gainers.
US equities eked out modest gains on Thursday after House Speaker Nancy Pelosi said Democrats and the White House are “just about there” on a Coronavirus stimulus deal.
Further, on the economic front, jobless claims came in well below the economists’ estimates, and existing home sales rose more than expected in September. At close, Dow led from the front as it gained 0.54 per cent, followed by S&P 500 and Nasdaq, which added 0.52 per cent and 0.19 per cent, respectively. European indices ended Thursday’s session in negative terrain amid disappointing economic data and an uptick in Coronavirus cases in several parts of Europe.