Insight Online News
Mumbai, July 9 : Global concerns over the spread of ‘Delta’ variant as well as bearish expectations from the Q1FY22 results season, subdued the key Indian equity indices on Friday.
Equity markets opened in the negative zone and remained sideways throughout the day as investors became cautious of the rising Covid cases globally and profit booking continued for the second day in a row.
On the domestic front, market turned negative as host of events like weak global cues, below expected TCS results and fear of third wave of covid impacted sentiments.
The S&P BSE Sensex closed at 52,386.19 points, lower by 182.75 points, or 0.35 per cent, from its previous close.
Similarly, the Nifty50 on the National Stock Exchange closed at 15,689.80, lower by 38.10 points, or 0.24 per cent, from its previous close.
“Nifty closed lower for the second consecutive week, down 0.21 per cent over the week as worries return over the global economic recovery amid the spread of Covid-19 variants,” HDFC Securities’ Head of Retail Research, Deepak Jasani, said.
“On upmoves, Nifty could face resistance at the 15,762-15,801 band over the next 1-2 sessions, while on a weekly basis, it could face resistance in the 15,886-15,915 band. 15,635 could be a support for the near term while 15,506 could be a support for the coming week.”
Motilal Oswal Financial Services’ Head of Retail Research Siddhartha Khemka said: “The market faces headwinds from the advent of a possible third Covid wave, persistent inflation readings prompting a potential rate increase, and volatility around the US Fed taper talk.”
“Current valuations, while not expensive, are not lucrative from a risk-reward perspective. Meanwhile, balance sheets and cash flows have improved in FY21 as corporates tightened costs and deleveraged. The gradual unlocking of the economy and an improved demand backdrop do offer bottom-up opportunities. Consistent earnings delivery v/s expectations is critical for further outperformance.”
Geojit Financial Services Head of Research Vinod Nair said: “The domestic market continued to be under the grip of bears following weak Asian peers as investor confidence was shattered due to the global spread of Delta virus variant. The equity market is turning risk-averse and side-lined.”
“The IT sector also turned bearish as the initial earnings results did not meet the expectations of the market. While the focus of domestic investors has shifted from secondary to attractive primary IPOs, affecting the liquidity of trading in the equity market which we believe to be short-term.”
IANS / AGENCY