Pre Market - Snapshot - 05-08-2021



 US stocks slumped after mixed set of economic data that showed country added fewer jobs than anticipated and Fed Vice Chair suggested that rate could rise by 2023. The strong corporate earnings report got overshadowed by the mixed showing by economy. Dow fell almost 0.92%, S&P lost nearly 0.46%, Nasdaq closed just above the flat line. The small cap Russell 2000 lost close to 1.25%.


US dollar index moved higher to 92.25, US 10 year moved higher near 1.20%, Cboe Vix traded flat with small downside bias below 18. 


Crude futures continued to decline Brent fell near 70, WTI traded near 68. 


Indian indices continued to move higher into fresh record territory lead by strong gains in BFSI stocks. Sensex closed with gains in excess of 1%, Nifty added 0.79%. Wednesday's market move was a small deviation from recent past where broader market moved along with main indices. The current move was restricted to single sector and most of the other constituents were on the sidelines. The small and mid cap indices and stocks saw big cuts despite of strong showing by the indices.


For the day watch for weekly options expiry related volatility and more sector participation in the rally. For immediate term large caps may continue to outperform at the cost of broader markets. Use further weakness in mid and small cap stocks to accumulate quality names for big outperformance for rest of the calendar year.

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