Post Market views - Oct 14, 2022 - Reliance Securities

Mr. Mitul Shah - Head of Research at Reliance Securities.

Domestic equities closed higher following positive global cues. The Nifty rose 1%, Nifty Mid Cap was largely flat while Nifty Small Cap rose slightly at 0.1%. Most sectoral indices ended in green. Nifty Fin Services and Nifty Bank were the major gainers which climbed 1.8% each, followed by Nifty Pvt Bank which was up 1.7%. Nifty Oil & Gas (-1.1%) and Nifty Reality (-0.8%) were the primary laggards. The market is looking earnings session very closely whilst staying cautious about rate hikes from the Central Banks as inflationary pressure continues to be a major economic hurdle.

U.S. equities closed higher making a sharp reversal from the day's low. The Dow Jones jumped 2.8%, S&P 500 added 2.6%, while Nasdaq rose 2.2%. The U.S. consumer inflation excluding volatile energy and food prices accelerated to a new four-decade high. The overall CPI increased 8.2% in September compared to 8.3% in August and 9.1% in June. Core measure of the CPI gained 6.6% in September from last year, the biggest increase since August 1982. The benchmark 10-year U.S. Treasury note rose to 3.952% from 3.901% on Wednesday. Meanwhile, U.S. mortgage rates jumped to their highest level in more than two decades to hit 6.92%.

India's growth remains strong and expected to be one of the fastest growing economies in the world, while global recession and downgrading of growth persisted for major economies. India's growth trajectory supported by the, improvement in capacity utilisation, revival in credit growth, strong corporate balance sheets, upbeat consumer and business confidence. Central banks across the world are in the midst of inflation firefighting and raising policy rates.. The market is tracking 2QFY23 earning season while stock specific action based on results and management commentary are the key monitorable in the coming weeks.

Source : Equity Bulls

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