Volatility hits equity indices ahead of monetary policy decision (2nd Ld)
Wednesday - August 5, 2020 7:12 pm , Category : BUSINESS
Mumbai, Aug 5 (IANS) Volatility prevailed on Wednesday to hamper the upward movement of key Indian equity indices, a day ahead of monetary policy decision.Consequently, after making healthy gains, the stock markets ended on a flat- to-positive note.Prior to ceding their gains, the BSE Sensex reclaimed the psychological mark of 38,000 points.In case of NSE Nifty, the index opened on a positive note and moved higher. However, selling pressure pushed it lower by 160 points before the index finally recovered to close with marginal gains. Sector-wise, the top gainers were the BSE Metal, Auto, CD and Telecom indices, whereas BSE Power, FMCG and IT indices lost ground.The Nifty50 on the National Stock Exchange closed at 11,101.65, higher by 6. 40 points or 0.06 per cent from its previous close.Similarly, the S&P BSE Sensex closed at 37,663.33, lower by 24.58 points or 0.07 per cent from its previous close of 37,687.91.It opened at 37,892.3 points and touched an intra-day high of 38,139.96 and a low of 37,550.60."Technically, while the Nifty witnessed a sharp sell-off from the highs, the recovery from the lows has ensured that the short-term uptrend remains intact," said Deepak Jasani, Head of Retail Research at HDFC Securities."It will be important that the Nifty holds above the immediate support of 11,064 points for the current uptrend to continue. Immediate resistances are now at 11,226 points."According to Vinod Nair, Head of Research at Geojit Financial Services: "Indian benchmark indices were volatile in trade before closing flat with a positive bias. Global cues were also positive while gold again jumped to record highs. Positive earnings reports are driving stocks and markets around the world, and the same trend is visible in the Indian markets too.""Liquidity is a major driver for the markets and it is chasing companies which are declaring stable earnings or outlook. Uncertainties remain while markets will in the near term look forward to the commentary and RBI actions at the end of the MPC meeting tomorrow."The RBI's Monetary Policy Committee is expected to release its resolution on the monetary policy after their meeting on August 4-6.
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