Daily Markets Wrap - Sep 1, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell on Sept 01 after the swift rise seen on the previous session, pulled down by weak global cues. Nifty opened gap down but soon started to rise. After making an intra day high at 1025Hrs, it fell once again. At close, Nifty was down 1.22% or 216.5 points at 17542.

Volumes on the weekly F&O expiry day were higher than the recent average. Among sectors, Telecom, Realty and Capital Goods indices rose the most while Oil & Gas, Metals and IT indices fell the most. Broad market outperformed as Midcap/Smallcap indices rose 0.57-0.48% and advance decline ratio was in the positive at 1.08:1.

Global stock markets kicked off September on a negative note, extending their declines into a fifth day as weak Chinese data and new Covid-19 lockdowns in the world's second-largest economy weighed on sentiments and on deepening worries about aggressive rate hikes and record-high inflation in the Euro region.

Global factory activity slumped in August as Russia's war in Ukraine and China's zero COVID-19 curbs continued to hurt businesses, surveys showed on Thursday, although there were indications cost pressures were starting to ease.

India collected Rs 1.44 lakh crore in Goods and Services Tax (GST) in August, registering an increase of 28 percent from the mop-up a year back but 4% lower than that in July 2022. India's manufacturing activity improved again in August, although S&P Global's Purchasing Managers' Index (PMI) edged down to 56.2 from the eight-month high of 56.4 recorded in July.

Moody's Investors Service has cut India's economic growth projection for the second time this year on rising interest rates and slowing global growth. The ratings agency has lowered its India GDP growth forecast to 7.7% for 2022 from 8.8% projected in May, when it had cut the estimate from 9.1%, according to its August update of the Global Macro Outlook for 2022-23.

Nifty failed to build on to the large gains made on the previous day. Global sentiments have been able to halt the rallies in India over the past few weeks, though the broader market seems positive. 17696-17345 could be the band for the Nifty in the near term.

Source : Equity Bulls

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