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Post Market views - April 18, 2022 - Reliance Securities
Posted On : 2022-04-18 18:54:36( TIMEZONE : IST )
Mr Mitul Shah, Head Of Research at Reliance Securities.
Domestic equities started the week in red as market sentiments were heavily influenced by commodity prices, inflationary pressures and prospects of additional sanctions on the Russian economy. Nifty lost 1.7%, while broader markets outperformed the main indices with Nifty MidCap and Nifty SmallCap declining 1.1% and 1.2% respectively. Most sectoral indices ended in red with Nifty IT decreasing the most at 4.5% followed by Nifty PSU Bank (-2.3%) and Nifty Fin Service (-2.1%). Nifty FMCG was the major gainer which was up 0.7%. Moreover, investors will monitor the corporate earnings of companies which is expected to be declared in the coming week.
U.S. equities closed lower for short trading week with Dow Jones lost 0.8%, S&P 500 index fell 2.1% while Nasdaq declined by 2.6% for the week. The 10-year Treasury yield rallied 12 basis points to 2.83%, hitting the highest level since late 2018. The market digested two important inflation readings for the month of March - the U.S. consumer price index (CPI) and the producer price index (PPI). Both indicators remain at multidecade highs. The CPI figure came in at 8.5% at a 40-year high, while core CPI, came in at 6.5%. Meanwhile, PPI, which measures prices paid by domestic producers, came in at 11.2% the highest on record. While headline inflation remains hot, its early signals that it could peak in the weeks ahead. Most notably, the upward pressure on energy and commodity prices has shown some sign of abating, despite the ongoing crisis in Ukraine.
As the Q4 season is underway, the markets would be closely monitoring the earnings and management commentary, for the next few weeks. Moreover, trend in global stock markets, the movement of rupee against the dollar and crude oil prices will also influence the equity markets in the near term. The world continues to witness the developments on the Russia-Ukraine war, which is disrupting shipping and air freight. Over the near-term, war issue and sanctions on Russian products would have high negative bearings on global and Indian equities.
