Post Market views - March 29, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed higher reinforced by a fall in global crude prices and with the resumption of peace talks between Russia and Ukraine in Turkey. However, high inflationary pressures in the U.S and an increasingly hawkish Fed continue to be of concern. Nifty gained 0.67%. Nifty MidCap and Nifty SmallCap were up 0.41% and 0.37% respectively. Most sectoral indices ended in green. Nifty Pharma increased the most at 1.46%, followed by Nifty Fin Service which gained 1.25%. Nifty Media and Nifty PSU Bank were the major laggards which dipped 1.02% and 0.75% respectively.

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.

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.

Source : Equity Bulls

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