Post Market Views - April 21, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed higher for second consecutive day. Nifty gained 1.5%, while Nifty MidCap and Nifty SmallCap were up 1.2% and 1.7% respectively. All sectoral indices ended in green. Nifty Auto gained the most at 2.2% followed by Nifty PVT Bank and Nifty Fin Service which increased 1.69% and 1.65% respectively. As Nestle India reported its earnings earlier in the day, investors await on results from HCL Tech, L&T Technology Services and ICICI Lombard General among others. Moreover, news flow on the developments of the Russia-Ukraine war and rising COVID infections in China, remained on investors' radar.

U.S equities ended mixed after positive earnings momentum. Persisting inflationary pressures and news on the Russia-Ukraine war augmented the markets' volatility. The Dow Jones rose 0.71% while the S&P 500 lost 0.06%. The tech-heavy Nasdaq dropped 1.2%, primarily due to a massive 35.1% plunge in the stock of streaming giant Netflix Inc, recording its highest decline in over a decade. The yield on 10-year Treasury note receded to 2.85% after rallying up to 3% earlier in the session. Meanwhile the Federal Reserve issued its economic outlook and is expected to roll out interest rate hikes at its upcoming meetings in an attempt to curb inflation.

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 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. Over the near-term, war issue and sanctions on Russian products would have high negative bearings on global and Indian equities.

Source : Equity Bulls

Keywords

PostMarketViews RelianceSecurities Nifty Sensex