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Sensex, Nifty end flat as coronavirus cases surpass 2 million mark

In a volatile trading session, Sensex and Nifty turned red on Friday's opening bell and later marginally rose by the last hour of session amid gains in SGX Nifty. During the week, Sensex has risen 433 points or 1.15%, while Nifty has gained 140 points or 1.27%.

Rupa Burman Roy | August 7, 2020 | Updated 17:47 IST
Sensex, Nifty end flat as coronavirus cases surpass 2 million mark
Gains in bank, metal, FMCG, auto and banking were capped by losses in IT, media, pharma, realty indices

Benchmark indices ended flat today as domestic coronavirus cases crossing two million mark reduced optimism over Q1 earnings and RBI's relief measures for the economy. Sensex ended 15 points higher at 38,040 and Nifty gained 13 points to 11,214.

During the week, Sensex has risen 433 points or 1.15%, while Nifty has gained 140 points or 1.27%.

Asian Paints, UltraTech Cement, Bajaj Finserv, IndusInd Bank and TCS were among the gainers on Sensex today. On the other hand, HCL Tech, HDFC twins, Infosys, Sun Pharma, ICICI Bank and Kotak Bank were among the top losers today. Gains in bank, metal, FMCG, auto and banking were capped by losses in IT, media, pharma, realty indices.

In India, coronavirus cases surpassed 20 lakh mark today, with total deaths standing at 0.41 lakh. Worldwide, there are 189 lakh confirmed cases and 7.17 lakh deaths from the coronavirus COVID-19 outbreak.

On today's market outlook, S Ranganathan, Head of Research at LKP Securities said, "Today's trade was characterised by robust activity in select high-quality midcaps as well as small caps as a lower interest rate cycle benefits many such stocks. the heightened activity was also observed in the sugar sector and stocks with a rural focus like roofing and seeds".

Commenting on today's trade, 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.

In a volatile trading session, Sensex and Nifty turned red on Friday's opening bell and later marginally rose by the last hour of session amid gains in SGX Nifty.

Meanwhile, investors turned cautious ahead of Q1 earnings by M&M, Cipla, Siemens, Abbott, Aditya Birla Capital, Adani Transmission, Alkem Labs, Bata among others, that also kept the tone for the market muted today.

Global markets

Global equities were trading lower today. Asian stocks fell as investors turned cautious awaiting several economic data releases for July and signs of growing China-US tensions that were evident after  U President Donald Trump took aim at China's tech firms. Shares on Wall Street managed to close higher on Thursday, as investors were buoyed on hopes of a new fiscal stimulus package

Halt on fiscal aid negotiations in Washington coupled with pending US job data today as kept equities cautious today. Projections of slower economic recovery from the virus impact by Bank of England also weighed the sentiments.

Technical view

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We have not been successful in closing above the 11250 mark - this could be because the markets would like to take a fresh call on Monday. Until then the support remains at 11100. A trigger of 11250 could take us to 11400-11500 and a break of 11100 could drag us down to 10800."

Expressing views on the week ahead, Vinod Nair added, "Global markets are awaiting and will definitely be impacted by the heightened US-China tensions and imminent Chinese reaction. Heightened Chinese aggression could have a negative impact on our markets in the near term. However, there could be a silver lining for Indian markets in the long term, with global investors hesitating to invest in Chinese companies. For lack of options, some of this money could find its way into Indian companies, provided the right ecosystem is built. Earnings specific action will likely continue next week, with indices searching for direction in the near term. Accumulation continues the best strategy."

Stocks in news: Vodafone, Yes Bank, HPCL, Jubilant FoodWorks, JK Tyre

Stock Market Highlights: Sensex ends 15 points higher, Nifty at 11,214; UPL, Bajaj twins top gainers

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