Pre-Market views - March 29, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

U.S equities ended higher after a choppy session, despite fears of the FED increasing interest rates even further by 50 basis points in April 2022. Fall in Crude prices supported market rally across economies. The Nasdaq Composite jumped 1.31%, the Dow Jones Industrial Average increased 0.27% while the S&P 500 climbed 0.71%. The 10-year U.S. Treasury yields declined to ~2.5%. Moreover, lockdown in Shanghai, China due to rising coronavirus cases dragged down oil prices as investors foresee weaker demand. U.S. crude fell 9.14% to $103.49 per barrel while Brent slid 9.1% to $109.70.

Domestic equities gained due to fall in crude prices, despite no significant achievements in the Ukraine-Russia talks, as the countries enter the 2nd month of the conflict. Nifty gained 0.4%. Nifty MidCap and Nifty SmallCap were down 0.18% and 0.73% respectively. Most sectoral indices ended in green except Nifty IT (-0.35%) and Nifty Pharma (-0.33%). Nifty PSU Bank increased the most at 1.22% followed by Nifty Metal which gained 0.91%. Moreover, China's financial hub Shanghai re-imposed COVID lockdown amid rising cases, as investors fear that the 2-year old virus may threaten global economic activity once again.

The Russia-Ukraine conflict and inflationary pressures continue to keep the markets wavered. Additionally, volatile global crude prices are disrupting shipping and air freight. While the world still awaits the resolution of Russia-Ukraine crisis, over the near-term, devastation due to the war and sanctions on Russian products would have high negative bearings on global and Indian equities. The markets are likely to see gap up opening, SGX nifty is up 154 points compared to Yesterday's spot Nifty closing. Asian markets trading in green (Nikkei is up 0.6%, while Hang Seng is up 0.72%).

Source : Equity Bulls

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