Pre-Market views - March 31, 2021 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

U.S equities ended lower following 3-4 days of consecutive gain. Volatility in markets persist as investors re-assess the economic and geopolitical risks associated with Russia-Ukraine war. Moreover, expectation of FED tightening monetary policy even further, continues to impact the market sentiment. The Dow Jones dipped 0.2%. The S&P 500 index fell 0.6%, while the Nasdaq slumped 1.2%. The 10-year Treasury yield fell 4 basis points to 2.36%.

Domestic equities closed higher following positive global cues, as progress in Russia-Ukraine peace-talks improved the market sentiment. However, inflationary pressures in the U.S economy continue to pose a threat with FED gearing up for a more aggressive monetary policy tightening. Nifty gained 0.88%. Nifty MidCap and Nifty SmallCap were up 0.83% and 0.87% respectively. Most sectoral indices ended in green except Nifty Pharma (-0.2%) and Nifty Metal (-2.24%). Nifty Media increased the most at 2.13% followed by Nifty Fin Service which popped 1.92%. FIIs bought shares worth Rs1,358 crore, while DIIs bought shares worth Rs1,216 crore. The Russia-Ukraine conflict and inflationary pressures are assessing the market sentiment. Oil prices continue to be volatile as the markets around the world witness the developments of the war, which is disrupting shipping and air freight. Moreover, the Chinese economy also monitored a recent wave of COVID-19 infections. Market may remain unsteady until the resolution of the Russia-Ukraine crisis. However, over near term, war issue 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 94 points compared to Yesterday's spot Nifty closing. Asian markets trading in red (Nikkei is down 0.14%, while Hang Seng is down 0.74%).

Source : Equity Bulls

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