On back of optimism about the resumption vaccine trial and positive cues from Asian peers, the SGX Nifty is indicating that the Indian markets are set to kick off the week on a positive note and most importantly, will try and build on last week’s gains.
The SGX Nifty is trading up by 44 points at 11,498.50 levels. Nifty has stiff resistance placed in the zone of 11,565-11,585 as long as Nifty trades below this resistance level it would we do not expect a runaway rise in the markets. Having said that, the markets would be in full action today after the SEBI announced new regulations for multi-cap funds. To make sure that the multi-cap schemes remains true to their tag watchdog SEBI has made it mandatory for multi-cap funds to invest 25 per cent each in large, mid and small-cap stocks. In the current scenario the multi-cap funds have exposure to large and mid-cap is in compliance with the new regulations, but they are underweight on Small-caps so this segment of market could see a lot of buzz. However, on Sunday SEBI clarified that MFs have choice to meet the condition of the circular based on the preference of their unit holders. Or else, they can facilitate switch to other schemes, merge their multi-cap scheme with their large-cap scheme or convert their multi-cap scheme to another category.
On economic data front, market participants would look forward to CPI and WPI inflation data which set to release today. All-in-all, it is going to be an action filled day on the D-Street!
Asian indices are buoyant in early trades on Monday despite mixed cues from Wall Street on Friday, the key catalyst for the optimism this morning is the news that AstraZeneca has resumed clinical trial of their proposed Vaccine for coronavirus after receiving approval from safety regulators. Japan’s Nikkei has jumped 0.72 per cent and trading above 23,500 mark, Hong Kong’s Hang Seng was up by 0.61 per cent and traded above 24,600 mark and the China’s Shanghai Composite added 0.53 per cent and was trading at 3,277.50 mark.
The final trading session of the week, On D-Street was listless as markets oscillated in a narrow band and ended the day with miniscule gains. Nifty and Sensex added 0.13 and 0.04 per cent, respectively. The broader indices outperformed the frontline gauge with the Nifty Midcap and Small-cap gaining 0.68 and 0.27 per cent, respectively. On the sectoral front, Nifty IT and Nifty Realty were the top gainers, while, Nifty Media was top losers.
On Wall Street, US stocks lacked clear direction on Friday as a result indices ended the day on a mixed note. The Dow outperformed its counterparts as it had advanced 0.5 per cent followed by the S&P 500 which ended just above the neutral line. While, the tech-laden Nasdaq slipped 0.6 per cent. On economic front, the Consumer Price Index came in hotter than expected. Meanwhile, majority of the European indices ended in green with modest gains.