Post Market views - March 9, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic markets closed higher despite the geopolitical turmoil, surging global crude prices and fears of inflation in the near term. Nifty gained by 2.1%. Nifty MidCap and Nifty SmallCap were up by 2.1% and 2.3% respectively. Most sectoral indices ended in green except Nifty Metal (-0.4%). Nifty Media increased the most at 4% followed by Nifty Reality (+2.83%) and Nifty Auto (+2.82%).

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 lost 0.7% while the Nasdaq fell 0.3%. The 10-year Treasury yield jumped 12 basis points to 1.87%. Moreover, Fed is expected to raise rates at its monetary policy meeting next week for the first time in more than three years.

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. 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.

Source : Equity Bulls

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