Pre-Market Views - Feb 24, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

US equities extends sell-off as Ukraine declared a state of emergency amid intensifying fears of a full-scale Russian invasion. The Dow Jones fell 1.4%. The S&P 500 index retreated 1.8% while the Nasdaq composite tumbled 2.6%. The 10-year Treasury yield rose 3 basis points to 1.98%. Western powers have expanded sanctions to deter Russian aggression after the country deployed military units around its neighbour. Moreover, Investors have also been grappling with the prospects of Federal Reserve policy tightening aimed at combating surging inflation.

Domestic equities closed lower in last hour of trade after positive opening. While Nifty declined by 0.17%, broader markets outperformed the main indices with Nifty Midcap and Nifty Smallcap increasing by 0.33% and 0.67% respectively. Most sectoral indices ended in green. Nifty Reality increased the most by 3.2% followed by Nifty PSU Bank (+1%). Nifty Auto declined by 0.2%. There is hopes that the sanction by the west may not hit Russian oil supplies. The geopolitical pot is boiling. If that is no enough, the Fed's aggressive tone on rate hike is keeping market participants on the edge. The LIC's upcoming IPO - India's biggest ever public listing--continues to make waves. As the ball gets rolling with mega roadshows to connect with top-notch investors, the IDBI Bank stake sale comes up next on the Centre's check list. As the economy looks to get on to the running track, the ongoing disinvestment process will for sure come as a shot in the arm for the government. The markets are likely to see down opening, SGX nifty is down 241 points compared to yesterday's spot Nifty closing. Asian markets trading in red (Nikkei is down 0.93%, while Hang seng is down 1.6%)

Source : Equity Bulls

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