Post Market views - April 25, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed lower following weak global cues as concerns over worsening inflation have compelled investors to expect a faster rise in interest rates. Nifty declined 1.1% while broader markets underperformed in comparison to the main indices. Nifty MidCap and Nifty SmallCap tumbled 2.1% and 2.3% respectively. All sectoral indices ended in red. Nifty Reality was the biggest laggard which plummeted 3.6%, followed by Nifty Metal and Nifty IT which dropped 2.7% and 2.1% respectively. Furthermore, the Federal Reserve's hawkish tone, Russia-Ukraine crisis and surging COVID cases around the world continue to affect the market sentiments.

U.S. equities closed lower for the week with Dow Jones dipped 1.9%, the S&P lost 2.8%, and the tech-heavy Nasdaq declined by 3.8%. The 10-year U.S. Treasury yield remained at 2.9%. Moreover, market sentiments will heavily rely on earnings for the biggest companies namely, Apple, Microsoft, Amazon and Google parent Alphabet, which are due this week. Markets in Europe were digesting Powell's statement as European Central Bank signalled that it might start hiking euro zone rates as early as July. Furthermore, the prolonged lockdown in Shanghai weighed on market and the Chinese currency.

The market is likely to remain volatile this week as traders roll over their positions in the F&O segment from the April series to May series. The next batch of Q4 results and management commentary, global stock market trends, and the movement of rupee and crude oil prices are likely to assess market sentiments in the near future. Moreover, the ongoing Russia-Ukraine crisis and sanctioning of Russian products would have high negative bearings on global and Indian equities.

Source : Equity Bulls

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