Pre-Market Views - March 9, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

U.S equities closed lower after President Biden announced sanctions on U.S. imports of Russian oil, natural gas and coal. Surging commodity prices and tightening global financial conditions have further threatened the market prospects. The Dow Jones fell 0.6%. The S&P 500 index lost 0.7% while the Nasdaq fell 0.3%. The 10-year Treasury yield jumped 12 basis points to 1.87%. U.S. crude closed up 3.6% to $123.70 per barrel. Moreover, Fed is expected to raise rates at its monetary policy meeting next week for the first time in more than three years.

Domestic equity markets closed higher despite Russia and Ukraine's failure to reach a deal on creating humanitarian corridors as bloodshed from Russia's invasion increased. Nifty gained 0.95%. Nifty MidCap and Nifty SmallCap jump 1.2% and 1.5% respectively. Most sectoral indices ended in green except Nifty Metal (-1.5%). Nifty Reality increased the most at 3.3% followed by Nifty PSU Bank (+2.6%) and Nifty IT (+2.7%).

Market may remain volatile due to the Russia-Ukraine crisis. Trend in global equities, the movement of rupee against the dollar and crude oil prices will dictate trend in the near term. The Indian economy is in good shape given the underlying stellar corporate earnings momentum, the cleansed balance sheets, improving asset quality of the banks, levers in place for capex cycle revival and credit off-take, probable manufacturing resurgence given PLI and other government reforms. This coupled with increasing DII participation can revive the markets gradually once prevailing clouds of uncertainty disappear. However, over near term war issue would have high negative bearings on global equity markets including Indian equities. The markets are likely to see gap down opening, SGX nifty is down 57 points compared to Yesterday's spot Nifty closing. Asian markets trading in green (Nikkei is up 0.5%, while Hang seng is largely flat).

Source : Equity Bulls

Keywords

PreMarketViews RelianceSecurities SGXNifty USEquities Oil NaturalGas DowJones Nasdaq