Indian markets closed lower today but on a weekly extended gains to the fourth week. The NSE Nifty 50 index fell 0.42% today to 10,768.05 and the S&P BSE Sensex declined 143 points to 36,594 with financial stocks suffering the biggest losses. But on the weekly basis, Sensex and Nifty closed up about 1.5% each, recording their fourth straight weekly gain.
Record jumps in coronavirus cases in many US states dented the global risk appetite with U.S. futures and stocks in Asia and Europe retreating.
HDFC fell 2.9% while private-sector lenders Axis Bank and IndusInd Bank slipped 3.1% each.
A record closing by market heavyweight RIL, which jumped 3%, capped the losses for Sensex and Nifty
"We believe the market is little stretched in the short term and expect a very limited upside. A break below 10600 will significantly dent the strength of the bulls," said Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.
Here is what analysts said on today's market performance:
Sanjeev Zarbade, VP PCG Research, Kotak Securities
“The BSE-30 Index gained 1.5% in the current week. Market mood remained buoyant, despite continuous increase in Covid-19 cases and high frequency indicators signaling mixed signs of recovery. FPIs sold equities worth US$261 mn over the past five trading sessions while DIIs sold US$106 mn worth of equities in the same period. We are now beginning to see some fatigue coming into the market as reflected by the selling by FPIs and DIIs. Also, the ongoing earnings season will be one of the most weak ones in many years. In view of this, for short term investors, it makes sense to remain cautious."
Vinod Nair, Head of Research at Geojit Financial Services
"Markets continued their volatile movements and ended the day negative, tracking mixed global cues. Global stocks were mixed following record infections in the US, which led to worries of delayed global economic recovery, while Indian markets worried about record cases of infections and increasing localized lockdowns. However, on a weekly basis, the benchmark indices gained around 1.5%. The weekly gains were mainly driven by liquidity and the hope that the virus would be contained soon and businesses back to normal. However, the outlook for the market is volatile as the earnings announcements have begun after a washout quarter for most industries. This uncertainty combined with profit booking happening after the recent rally, means that the volatility is expected to continue in the markets and investors would do well to be cautious and stock specific in this market."
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"The markets continued their range bound movements all of today. Nothing has changed in the last 4 trading sessions. The range commenced on Tuesday and has continued until today. We have closed within the range of 10650-10850. Both these levels continue to remain important and crucial in the coming week."