Post Market views - April 1, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities

Indian equities started first day of FY23 on positive note despite weak global cues. Nifty gained 1.2%. Broader markets outperformed the main indices with Nifty MidCap and Nifty SmallCap increasing by 1.5% and 1.7% respectively. Most sectoral indices ended in green except Nifty Pharma which largely ended flat. Nifty PSU Bank gained the most at 4% followed by Nifty PVT Bank which was up 2.3%. While investors continue to hope for a de-escalation of the ongoing crisis, Russian President threatened to cut off Europe's gas supply if payments were not made in roubles.

U.S. equities slumped to close the first quarter with its biggest quarterly decline in two years, as concerns persisted over continuing conflict in Ukraine, inflationary pressure on prices and the Federal Reserve's response. The S&P 500 fell 1.6%, the Nasdaq lost 1.5%, while the Dow Jones declined by 1.6%. The 10-year Treasury note dipped to 2.32%. Moreover, U.S President, Biden is preparing a major release of oil reserves to curb soaring energy prices and inflation. The U.S. is targeting Russia's technology sector in the latest round of sanctions.

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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