Post Market views - April 8, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed higher, as RBI's monetary policy committee kept the repo rate and the reverse repo rate unchanged at 4% and 3.35% respectively, striving to aid India's economic growth amid rising inflation due to the Russia-Ukraine war. Nifty gained 0.89%, while Nifty MidCap and Nifty SmallCap increased 0.94% and 0.44% respectively. All sectoral indices ended in green. Nifty Metal gained the most at 2.13% followed by Nifty FMCG and Nifty PSU Bank which were up 2.08% and 0.77% respectively.

U.S equities recouped gains and ended in green after a choppy session, as investors mulled over FED's policy meeting on the previous day, which suggested that an aggressive monetary policy is underway. The S&P 500 rose 0.43%, the Dow Jones Industrial Average was up 0.25%, while the Nasdaq Composite increased 0.06%. The 10-year Treasury yield climbed to 2.65% and has been the highest in three years. U.S. crude fell 20 cents to settle at $96.03 per 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 exports would have menacing effects on global and Indian equities.

Source : Equity Bulls

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