Daily Market Commentary - Sep 5, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices open on a positive note with the Nifty above 17550. At the time of closing, Sensex was up by 442.65 points or 0.75% at 59,245.98 & Nifty was up by 126.35 points or 0.72% at 17,665.80.

During the day, Nifty Bank trades at a 9-months high. FPI inflows hit a 20-month high of Rs. 51,200 cr. in August. A marginal contraction in exports, coupled with a continuing surge in the country's import bill through August, has renewed concerns over India's widening trade deficit and its impact on the economy. For the first five months of this fiscal year, exports are at $192.6 billion, while imports stood at $317.8 billion, leaving India with a record trade deficit of $125.2 billion. RBI Governor said inflation is likely to go down in the coming months in India and the impact of high inflation is past its peak. The operating margin of domestic primary steelmakers is estimated to fall to 14-16% in the first half of this fiscal, compared with a decadal high of 30% for the whole of last fiscal, due to high input costs, lower realizations and imposition of export duty on finished steel products.

Malaysia's palm oil inventories at end-August likely swelled above 2 million tonnes for the first time in more than two years, lifted by a jump in production. OPEC+ is likely to keep oil output quotas unchanged for October. American employers slowed down their hiring in August in the face of rising interest rates, high inflation, and sluggish consumer spending, all of which have weakened the outlook for the economy. The US government reported that the economy added 315,000 jobs last month, down from 526,000 in July. The unemployment rate rose to 3.7%. On the sectoral front, all the sectors end in green with major buying seeing in Media (2.75%), Metals & banking sector (1% to 2%).

Nifty 50 top gainers are Hindalco, JSW Steel, NTPC, ITC & Sun Pharma while Bajaj Auto, Nestle India, Britannia, and Ultra Tech Cement & Eicher motors were among the top losers.

Source : Equity Bulls

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