Results To Take Centre-Stage!
The PMI data in the Euro zone did disappoint market participants but the stock prices after a bout of correction managed to recover, nevertheless tracking the virus-related developments and the US markets. The Asian markets traded strong in the past couple of weeks as there are signs emerging of the situation getting calmer between the US and China
The Sensex, in line with the global peers, was up by 1.62 per cent while Nifty gained 1.74 per cent. The broader markets outperformed the key benchmark indices as BSE Mid-Cap index gained 4.15 per cent while BSE Small-Cap index was up by 7.11 per cent. Amongst the sectoral indices, BSE Power index was up by 11.31 per cent, followed by BSE Metal index which gained 7.62 per cent. Healthcare stocks saw profit booking in the past couple of weeks, losing 1.93 per cent while realty stocks gained, pushing the BSE Realty index up by 6 per cent.
FIIs were net buyers to the tune of Rs 31,689.93 crore while DIIs were net sellers to the tune of Rs 6,471.46 crore. Dow Jones gained 1.86 per cent, S & P 500 was up by 2.11 per cent while NASDAQ jumped 3.75 per cent in the fortnight. European markets traded green with German DAX leading the gains, up by 2.99 per cent followed by CAC 40 gaining 2 per cent and FTSE 100 up by 0.89 per cent. The Asian Markets were led by Hang Seng gaining nearly 5 per cent followed by Nikkei which was up by 2.94 per cent in the past couple of weeks. Shanghai gained 0.19 per cent during a similar period.
Metal prices and crude oil prices increased in the past couple of weeks while gold prices retraced a little in the similar period. The US dollar continued its slump while the rupee showed some strength. The global markets thrived on the developments reported on the vaccine front with incremental positive news suggesting that the fight against the virus is making some tangible inroads. The sober interest rates and the commentary from central banks to keep the interest rates low for the foreseeable future also impacted the stock prices favourably.
The PMI data in the Euro zone did disappoint market participants but the stock prices after a bout of correction managed to recover, nevertheless tracking the virus-related developments and the US markets. The Asian markets traded strong in the past couple of weeks as there are signs emerging of the situation getting calmer between the US and China. China is believed to have started placing orders for agricultural products from the US as per the trade agreement and the US is believed to have given permission to use We Chat by US companies operating in China. This acted as a sentiment booster for the Asian markets.
The results season is active and several companies from the large-cap space,mid-cap space and micro-cap space have managed to beat the market estimates, suggesting that recovery is on the cards and that earnings growth may come back to normal within a few quarters. Going ahead, the Indian markets are expected to react to the incremental announcements by the Indian government with reference to making India self-reliant. Also, the earnings growth and the quality of earnings will take centre-stage in the coming two weeks.
