Post Market views - March 31, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed lower following negative global cues as the Russia-Ukraine crisis enters its fifth week. Nifty declined 0.2%. Broader markets outperformed the main indices with Nifty MidCap and Nifty SmallCap increasing 0.3% and 0.7% respectively. Sectoral indices ended mixed with Nifty FMCG gaining the most at 1.2%, followed by Nifty Media which was up 0.9%. Nifty Pharma and Nifty PSU Bank were the major laggards, which dipped 1.1% and 0.8% respectively.

U.S equities ended lower following 3-4 straight days of 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 fell 0.2%. The S&P 500 index sank 0.6%, while the Nasdaq composite slumped 1.2%. The 10-year Treasury yield fell 4 basis points to 2.36%.

Markets continue to remain jittery as investors try to gauge the effects of Russia-Ukraine war, whilst simultaneously mulling over the possibility of FED raising interest rates even further to curb inflation. Additionally, rising oil and commodity prices are threatening supply-chain and logistics by disrupting shipping and air freight. The Chinese economy continues its battle with rising coronavirus infections. While the world awaits the resolution of the Russia-Ukraine crisis, over near-term, devastation due to the war and additional sanctions on the Russian economy, would have menacing effects on global and Indian equities.

Source : Equity Bulls

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