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NSE Intra-day chart (28 May 2021)
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Market Commentary 31 May 2021
Markets to get negative start amid mixed global cues; GDP data eyed


Indian equity benchmarks ended higher by over half percent on Friday, tracking gains in index heavyweights Reliance Industries, Mahindra & Mahindra, HDFC Bank and HDFC amid positive cues from global markets. Further, decline in daily COVID-19 caseload too bolstered investor sentiment. Markets made optimistic start and traded in green for whole day as traders took some support with a private report that the government is hopeful of a speedy launch of single-dose COVID-19 vaccine Sputnik Light in India and all stakeholders, including the Russian manufacturer and its Indian partners, have been directed to fast-track the application and regulatory approval procedures for the jab to boost the country's vaccination drive. Sentiments remained positive with the Reserve Bank stating that it will ensure that system-level liquidity remains comfortable during 2021-22 in alignment with the stance of monetary policy, and monetary transmission continues unimpeded while maintaining financial stability. Indian bourses continued their firm trade in second half of the session, taking support from report that the size of the Reserve Bank of India's (RBI) balance sheet, which is reflective of activities carried out by it in pursuance of currency issue function as well as monetary policy and reserve management, has increased by Rs 3,72,876.43 crore, i.e., 6.99 percent from Rs 53,34,792.70 crore as on June 30, 2020 to Rs 57,07,669.13 crore as on March 31, 2021. The increase on the asset side was mainly due to increase in foreign and domestic investments by 11.48 percent and 13.75 percent, respectively. Meanwhile, with an aim to boost export potential of India's agricultural and processed food products during the COVID-19 pandemic, the Agricultural and Processed Food Products Export Development Authority (APEDA) has organised the second virtual trade fair (VTF) for horticultural produce. Finally, the BSE Sensex rose 307.66 points or 0.60% to 51,422.88, while the CNX Nifty was up by 97.80 points or 0.64% to 15,435.65.


The US markets settled higher on Friday amid rising optimism about economic recovery thanks to upbeat economic data, and prospects of additional fiscal stimulus. US President Joe Biden on Friday unveiled a $6 trillion budget for next year that's piled high with new safety net programs for the poor and middle class. Sentiments got some support after an inflation reading preferred by the Federal Reserve showed an acceleration in the pace of price growth but not as much as traders had feared. The reading on core consumer prices showed the pace of price growth accelerated to 3.1 percent in April from 1.9 percent in March. While the increase in prices exceeded market participants' estimates, the jump was apparently not as severe as to raise concerns about the Federal Reserve tightening monetary policy. The Fed has attributed the recent increase in prices to transitory factors and has repeatedly hinted that it will not consider tightening until prices exceed 2 percent for some time. The University of Michigan's consumer sentiment for the US was revised slightly higher to 82.9 in May of 2021 from a preliminary 82.8, matching market forecasts. The reading still pointed to the lowest consumer confidence level in 3 months. Personal income in the US decreased 13.1 percent month-over-month in April of 2021, compared to market expectations of a 14.1 percent drop and after jumping by a revised 20.9 percent in March. Personal spending in the United States rose 0.5 percent from a month earlier in April 2021, following an upwardly revised 4.7 percent rise in March.


Snapping a five-day winning streak, crude oil futures ended lower on Friday as traders took some profits and looked ahead to the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies. OPEC and its allies, collectively known as OPEC+, will meet on June 1 to consider the current oil market situation and decide on production levels. It is widely expected that the members will agree on a production hike as earlier proposed. Though, recent data from Energy Information Administration (EIA) that showed a larger than expected drop in crude inventories in the week ended May 21st helped limit oil's downside. Data released by Baker Hughes showed US rigs drilling for oil increased by 3 to 359 this week, rising for a fourth consecutive week. The total active US rig count, including those drilling for natural gas, climbed by 2 to 457. Crude oil futures for July declined 53 cents or 0.8 percent to settle at $66.32 barrel on the New York Mercantile Exchange. However, July Brent crude rose 17 cents or 0.2 percent to settle at 69.63 a barrel on London's Intercontinental Exchange.


Indian rupee ended higher for third straight session against greenback on Friday owing to dollar sale by exporters and banks. Beside, healthy gains in the domestic equity markets also supported rupee sentiments. Rupee got support with the Reserve Bank's statement that it will ensure that system-level liquidity remains comfortable during 2021-22 in alignment with the stance of monetary policy, and monetary transmission continues unimpeded while maintaining financial stability. On the global front, dollar strengthened further on Friday following its rise from more than four-month lows in recent sessions, as investors waited for US inflation data to set the currency's direction. Finally, the rupee ended 72.45, stronger by 15 paise from its previous close of 72.60 on Thursday.


The FIIs as per Friday's data were net buyer in equity segment, while net seller in debt segment. In equity segment, the gross buying was of Rs 43558.86 crore against gross selling of Rs 43514.27 crore, while in the debt segment, the gross purchase was of Rs 450.23 crore with gross sales of Rs 1400.89 crore. Besides, in the hybrid segment, the gross buying was of Rs 21.71 crore against gross selling of Rs 36.57 crore.


The US markets ended higher on Friday as investors brushed off a stronger-than-expected inflation reading, as both the Dow and S&P 500 indexes clinched their first weekly gain in the past three weeks. Asian markets are trading mostly in red on Monday as investors continue to weigh inflation risks and the strength of the economic recovery. Indian markets ended higher on Friday with the Nifty posting a record closing high as falling COVID-19 infection rates boosted sentiment. Today, the start of session is likely to be negative amid muted trend in Asian peers. Investors will be eyeing GDP data for the March quarter slated to be out today, along with the core sector data for April. There will be some cautiousness as an SBI Research analysis of EPFO payroll data shows that net job creation in the economy fell by 16.9 lakh in FY21 over the previous fiscal. However, the FY21 numbers are better than the FY20 net job creation, which had declined by 28.9 lakh, further cementing the view that the economy is not creating new employment opportunities. Traders may take note of the India Meteorological Department's (IMD) statement that the arrival of monsoon over Kerala is likely to delayed by two days and it is now expected to make an onset over the state by June 3. Though, falling COVID-19 infection rates in India may lift sentiment. India has been witnessing a steady decline in daily cases. The country recorded 153,485 fresh Covid-19 cases in the last 24 hours, the lowest daily count in 48 days or since April 13, 2021. Some support may come as the all-powerful Goods and Service Tax Council decided to exempt from integrated GST Covid-related items which are imported on payment basis for donating to the government or on recommendation of state authority to any relief agency, till August 31. These items include medical oxygen, concentrators, certain diagnostic markers test kits and COVID-19 vaccines, etc. Besides, the government has expanded the Rs 3-trillion Emergency Credit Line Guarantee Scheme (ECLGS) to help businesses hit by the second wave of the Covid-19 pandemic. Dubbed ECLGS 4.0, the scheme has added the civil aviation sector and loan to health institutions for on-site oxygen generation plants. Banking stocks will be in focus as Indian Banks Association (IBA) Chairman Rajkiran Rai said that the second wave of COVID-19 has impacted the collections of Public Sector Banks (PSBs) in the month of May. There will be some reaction in real estate industry stocks with a private report that after a pick-up in sales of apartments in Tier II and Tier III cities in the March quarter of 2021, the transactions dropped in April as many states imposed local lockdowns to prevent the spread of the Covid-19 pandemic. Infrastructure industry stocks will be in limelight with report that as many as 470 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.38 lakh crore. There will be some reaction in aviation industry stocks with report that domestic air travel is set to become costlier as the Civil Aviation Ministry raised the lower limit on fares by 13 to 16 per cent.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes





Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

State Bank of India





Indian Oil Corporation





Sun Pharmaceutical Industries





Tata Motors





Reliance Industries






  • Bharti Airtel has upgraded its mobile network in Kerala to deliver the best network experience for its customers. 
  • ICICI Bank has launched a unique facility of linking a UPI ID to its digital wallet Pockets, marking a departure from the current practice that demands such IDs be linked with a savings bank account. 
  • Maruti Suzuki India is revving up efforts to enhance production of oxygen generators by small-scale units to meet demand amid the second wave of the COVID-19 pandemic. 
  • Sun Pharma has acquired the rights to trademarks of diabetes drug Dapagliflozin under brands Oxra, Oxramet and Oxraduo in India from AstraZeneca AB, Sweden, parent company of AstraZeneca Pharma India with effect from May 28, 2021.
News Analysis