Post Market views - March 24, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed lower following negative global cues. Updates on the Russia-Ukraine war, crude oil rates and rising COVID cases in China continued to be on investors' radar. Nifty fell 0.3%. Broader markets outperformed main indices with Nifty MidCap and Nifty SmallCap gaining 0.6% and 0.4% respectively. Sectoral indices ended mixed with Nifty Media and Nifty Metal gaining the most at 6% and 1.4% respectively. Nifty Bank and Nifty Pvt Bank were the major laggards which fell 1.8% and 1.9% respectively.

U.S equities closed lower, offsetting previous day's gains amid surging Oil and commodity prices. The Dow Jones fell 1.29%. The S&P 500 lost 1.23% while the Nasdaq dropped 1.32%. The yield on 10-year Treasury notes was down 8 basis points to 2.3%. Moreover, the uncertainty around the resolution of Russia-Ukraine conflict, has also remained a point of concern. Oil prices further rose as exports of Russian and Kazakh crude were disrupted. U.S. crude prices jumped 4.7% to $114 per barrel.

Markets continue to witness developments on the Russia-Ukraine war, which is disrupting shipping and air freight. Markets also monitored a recent wave of COVID-19 infections in China. Both the RBI bulletin and the finance ministry's monthly economic review talked about potential trouble spots in the economy, going forward. 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, improving asset quality of the banks and levers are in place for capex cycle revival. DII participation can revive the markets gradually once prevailing clouds of uncertainty disappear. However, over near term, war issue and sanctions on Russian products would have high negative bearings on global equity markets including Indian equities.

Source : Equity Bulls

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