MARKET COMMENT Jayant Manglik, President, Religare Broking
After correcting sharply over the last two sessions, the Indian equity benchmark indices staged a smart comeback, led by a sharp recovery in the Rupee (vs USD) from record lows of 72.91. After trading in a narrow range during first half, the Nifty index bounced back sharply post noon from intra-day low from 11,250 and ended the session near the day’s high at 11,370 levels, up 0.7%.
The broader market indices exhibited a mix picture with BSE Smallcap underperforming the benchmark and closing lower by 0.3%, while BSE Midcap ended higher by 0.5%. Barring Realty & Banks, which underperformed, all the other sectoral indices ended in the green with FMCG, Metals & Capital Goods being the top gainers. Globally, most Asian indices ended on a weak note, while European markets were trading flat to marginally higher.
Despite today’s upmove, we continue to remain cautious on the Indian markets. Key macro data like IIP & CPI, movement of crude oil prices, currency (INR vs USD) and global developments, especially on the trade war front will dictate the market trend in the coming sessions. Traders should strictly hedge their positions, as we expect volatility to increase in the coming sessions