Post Market views - April 7, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed lower, following the negative global cues. Investors continue to focus on FED's possible aggressive monetary policy stance whilst tracking the developments of the Russia-Ukraine war. Nifty lost 0.9%, while Nifty MidCap and Nifty SmallCap fell 1% and 0.3% respectively. Most sectoral indices ended in red except Nifty Pharma (+0.4%). Nifty Metal declined the most at 1.7% followed by Nifty IT and Nifty Media which dipped 1.25% and 1.27% respectively.

U.S equities fell post the release of FED minutes, which corroborated views on the central bank aggressively tightening monetary policy to curb inflation. The Dow Jones fell 0.42%, the S&P 500 lost 0.97%, while the Nasdaq dropped 2.2%. The yield on 10-year treasury notes was up 5.5 bps to 2.61%. Moreover, U.S dollar surged to a nearly two-year high and oil prices declined sharply as U.S. crude fell 5.6%, to $96.23 a barrel.

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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