Post Market views - April 19, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities ended lower for second consecutive day after positive opening. Russia-Ukraine war and supply disruptions due to rising COVID infections in China, continue to be on investor's radar while they prepare for the quarterly earnings season. IT sector tank heavily after dismal quarterly performance and lower guidance from Infosys. Nifty lost 1.25%, while Nifty MidCap and Nifty SmallCap declined 1.4% and 1.7% respectively. All sectoral indices ended in red. Nifty IT dropped the most at 2.98% followed by Nifty FMCG and Nifty Reality which sank 2.8% and 2.5% respectively.

U.S equities closed lower, amid rising tension between Russia-Ukraine and crude price inching up again, ahead of a busy corporate earnings season. The Dow Jones fell 0.11%, the S&P 500 lost 0.02%, while the Nasdaq Composite dropped 0.14%.The benchmark 10-year Treasury yield climbed to 2.86%, after hitting 2.884% earlier in the session, the highest since Dec 2018.

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.

Source : Equity Bulls

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