Bulls get more reasons to tide higher ahead!

Early trends from SGX Nifty suggests there is no stopping for the bulls on D-Street. This is despite negative cues from the global peers. At 7:50 AM, SGX Nifty trades up by 38.50 points at 11,323 level. Mumbai, financial capital of India, reported its lowest single day Covid-19 cases in three months on highest single-day testing. Further, the unlock 3.0 which is set to begin from August 1, where gyms and cinema halls are likely to be permitted to function with some terms and conditions. This will act as a key catalyst for bullish sentiment for the domestic market.

A busy day ahead on the earnings front, as nearly 180 companies including some of the big names like Maruti Suzuki and Bharti Airtel, are slated to announce their quarterly earnings.

Amid a negative close on Wall Street overnight, Asian indices were mixed on Wednesday morning.  Japan’s Nikkei was the most impacted due to weak earnings reported by key Japanese companies, taking the wind out of the market. It is down by 0.74 per cent. On the contrary, Hong Kong’s Hang Seng and China’s Shanghai Composite advanced by 0.40 and 0.34 per cent, respectively.  

Asian Markets

Bulls made a great comeback on Tuesday. Indian benchmark indices recorded gains close to one and half per cent. Nifty, for the first time since March 3, closed at 11,300 level. Whereas, at closing bell, Sensex was at 38,493. Meanwhile, India VIX (India’s Volatility Index) dropped by 5 per cent to close below 24. Even the broader markets participated in the northward journey, but underperformed the frontline gauges. Nifty Mid-cap and Nifty Small-cap index surged 0.89 per cent and 1.36 per cent, respectively. On sectoral front, except for Nifty Media, all other sectoral indices ended higher. Nifty Auto, Nifty IT and Nifty Metal were the top gainers.

On Tuesday, US stocks ended lower amid uncertainty about stimulus bill and consumer confidence index numbers not falling on expected lines. Meanwhile, the US Fed extended its emergency lending facilities till the end of this year.  At closing bell, Nasdaq composite underperformed the most, declining more than a per cent. Even Dow and S&P 500 plunged by 0.77 per cent and 0.65 per cent, respectively. Moving ahead, market participants would be keenly waiting for the outcome of two-day Federal Reserve monetary policy meeting. It is expected to dictate the trend of the markets in the short-term. market participants of European region were caught between the uncertainty of re-imposition of lockdown measure amid surge in the coronavirus cases. This led European markets to end the session on a mixed note, despite witnessing the recovery from the day’s low.

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