Pandemic woes, global uncertainties subdue stock markets

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Mumbai, Aug 7 (IANS) Rising Covid-19 cases, along with the uncertainty surrounding global growth, subdued the Indian equity market on Friday.
Consequently, both the main indices ended on a flat note. However, broader market indices like the BSE Mid Cap and Small Cap gained more, thereby outperforming both the Sensex and the Nifty.
The market breadth remained positive on both the key indices.
Sectorally, BSE Power, Telecom, Auto, Metal and FMCG indices made gains, whereas the BSE CD, IT and Healthcare indices lost ground.
In terms of global indices, major Asian markets closed on a negative note. European indices like the FTSE, CAC and DAX also ended lower.
Index-wise, the NSE Nifty50 closed at 11,214.05, down by 13.90 points, or 0.12 per cent, from its previous close.
The Sensex closed at 38,040.57, higher by 15.12 points or 0.04 per cent from the previous close of 38,025.45.
It had opened at 37,951.07 and touched an intra-day high of 38,109.68 and a low of 37,787.38 points.
“Technically, while the Nifty has consolidated in a tight range on Friday, the underlying short term trend remains up,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“The uptrend could accelerate once the immediate highs of 11,257 are cleared. Crucial supports to watch for any trend reversal are at 11,064.”
Commenting on the day’s movement, Vinod Nair, Head of Research at Geojit Financial Services, said: “The unrelenting pace of virus infections and other uncertainties led to the benchmark indices ending flat today with volatile trades.”
“Global cues were also mostly negative, after Asian markets ended in losses following US actions on popular Chinese apps, and anticipating retaliatory action from China.”
Rahul Sharma, Market Strategist & Research Head, Equity99 Advisors, said: “In an extremely volatile trading session, market managed to end marginally in the green with the action shifting to mid-cap stocks, while technology and pharma stocks witnessed profit booking at higher levels today.”
“However, the overall market mood remained optimistic on strong management commentary and better than expected earnings. With global markets in a consolidation mode, we expect the domestic markets too consolidate at the current levels before the next week.”

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