Daily Market Commentary - Dec 7, 2022 - Bonanza Portfolio

Mr. Jitendra Upadhyay, Sr. Equity Research Analyst, BONANZA PORTFOLIO LTD

Indian indices opened on a flat note with Nifty around 18600. At the time of close, Sensex was down by 215.68 points or 0.34% to close at 62,410.68 and Nifty was down by 82.25 points or 0.44% to close at 18560.50.

During the day, RBI raises the repo rate by 35 bps to 6.25%. The repo rate is now at its highest level since August 2018. RBI expects over the next 12 months, inflation is expected to remain higher than the inflation target of 4%. Benchmark 10-year government bond yield rises about 8bps to 7.29% from 7.23% as RBI keeps stance unchanged as 'withdrawal of accommodation'. Real GDP growth for FY23 is projected at 6.8% with risks evenly balanced. GDP growth forecast: For Q3FY23 lowered to 4.4%, For Q4FY23 lowered to 4.2%, For Q1FY24 lowered to 7.1% and For Q2FY24 2023 seen at 5.9%. In line with the increase in REPO rate of 35 bps by the Monetary Policy Committee (MPC) of RBI, the Indian Bank has revised the REPO Benchmark Rate.

Bank of Maharashtra has successfully raised Capital of Rs 348 crore through private placement of BASEL III Compliant Tier II Bonds. Capital markets regulator Sebi can relax regulatory norms for the central government in relation to strategic disinvestment of public sector undertakings (PSUs), according to a notification. Fitch Ratings retained India's economic growth forecast at 7% for the current fiscal, saying India could be one of the fastest-growing emerging markets this year. The price of cement is hardening across the country and since August this year, the rates have gone up by Rs 16/per bag. According to the firm, prices went up by about Rs 6-7/bag in November. While the prices remained flat in Western and Central parts of the country, the rates hardened in Northern, Eastern and Southern regions. On the sectoral front, Information Technology, Power, Metal and Realty indices down 1% each.

Nifty 50 top gainers are Asian Paints, BPCL, HUL, Larsen and Toubro and Axis Bank while NTPC, Bajaj Finserv, Tata Motors, SBI Life Insurance and IndusInd Bank were among the top losers.

Source : Equity Bulls

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