Global Covid concerns, likely bearish earnings subdue equities
Mumbai, July 9, 2021
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.
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.
"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," Geojit Financial Services Head of Research Vinod Nair said.
"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."
CapitalVia Global Research's Head of Resarch Gaurav Garg said: "Indian markets opened in red after weak global cues yesterday and hence some sell-off was expected. However, Nifty50 has a strong support at 15,600 and the market has respected that in today's trade."
"BankNifty has also taken a support at around 34,900 levels and closed above the psychological level of 35,000. Next week, market directions will be determined by global cues and Q1 earning announcements by various companies which are lined up."