Mr Mitul Shah, Head Of Research at Reliance Securities.
Domestic indices ended lower, tracking weakness across Asian markets. Nifty declined 0.3%, while broader markets underperformed in comparison to the main indices as Nifty MidCap and Nifty SmallCap fell 0.6% and 0.63% respectively. Sectoral indices ended mixed. Nifty Media gained the most at 0.7%, followed by Metal which was up 0.5%. Nifty IT and Nifty Auto were the major laggards which plummeted 1.5% and 1.3% respectively. Moreover, earnings results, Russia-Ukraine war and surging COVID-19 cases continue to remain on focus.
U.S. equities closed lower on Friday and also saw decline for the week and month. The S&P 500 closed lower by 3.3%, for the week and fell 8.8% for the month of April to post its worst monthly performance since March 2020. The Dow jones dropped 4.9% for the month. The Nasdaq was the biggest laggard, sliding by more than 13% in April alone worst month since October 2008. Treasury yields climbed, and the benchmark 10-year yield rose above 2.9%. The data this week on corporate profits and the broad economy have shown signs of decelerating growth. Results from Big Tech companies including Alphabet and Twitter pointed to a slowdown in online ad businesses as companies pull back on marketing spending in the wake of moderating consumer demand. Moreover, throughout this earnings season, companies across industries, have pointed to elevated input and labor costs, as well as ongoing supply chain disruptions.
The much awaited biggest IPO of LIC will open for subscription this week. For equities, inflation remains a key overhang, coupled with the multi-sided impact of Russia's lingering war with Europe and strict lockdowns in Shanghai, China. Keeping aside the momentary rallies and corrections, volatility remains persistent. India is also feeling the pinch of Indonesia's palm oil ban, which is much larger than expected. Meanwhile, markets await on the next batch of quarterly results in the coming weeks. The Indian economy has shown signs of growth and recovery across the board, despite elevated input and labor costs and ongoing supply chain disruptions. Moreover, trend in global stock markets and the movement of rupee and crude oil prices, will dictate market trend in the near-term.