Pre Market - Snapshot - 12-08-2021



 US stocks extended gains into fresh record levels as markets shrugged off inflation concerns and passage of infra bill in senate may help boost the equities due to better economic environment. Materials, Industrials and other economic activity related stocks helped Dow and S&P take out new records with gains of 0.62% and 0.25% respectively. Nasdaq closed marginally in red with a cut of 0.16%, the small cap Russell 2000 closed just above the flat line. 


US dollar index retreated from 93.10 levels to close near 92.89, 10 year traded mildly soft near 1.34%, Cboe Vix declined to 16. 


Crude futures continued to move higher, Brent near 71.50, WTI above 69. 

Indian stocks ends the day flat amidst very high volatility outside benchmarks. Metal stocks gained but Pharma underperformed during the trade. It was a dramatic turn of events in mid and small cap stocks that saw stocks a move from lower limits to upper limits. Bombay Stock Exchange's circular to curb price volatility in stocks created fear amongst participants and stocks got hammered out of proportion. The mid market clarification from exchange brought some sanity in the markets and most stocks not only recovered early losses but some closed much higher than Tuesday's close. The last few day's volatility due to lack of clarity on the measures from the exchanges had resulted in unnatural volatility causing big losses for retail players. 


For the day, watch for weekly options expiry related volatility in derivative stocks. For broader markets watch for recovery from sell-off and stabilization of nerves before the next move. Continue to rebalance portfolios using volatility for medium term outperformance.

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