Pre-Market - Dec 13, 2022 - Reliance Securities

Mitul Shah - Head of Research - Institutional Desk - Reliance Securities Ltd.

The U.S. equities accelerated on Monday, as market geared up for a pivotal week that will include consumer-price data and a Federal Reserve policy update. The S&P 500 gained 0.9% and Dow Jones Industrial Average added 1.1%. The Nasdaq Composite rose 0.8%. Yields on the 10-year U.S. Treasury note rose to 3.61% from 3.567% on Friday. Yields on U.S. government bonds have fallen in recent weeks from the 14-year high they hit in October.

Indian equities ended flat in a volatile session. Broader markets out-performed the main indices as Nifty Mid Cap and Nifty Small Cap were up 0.5% and 0.6% respectively. All sectoral indices ended in green except Nifty IT (-0.4%), Nifty Pharma (-0.1%) and Nifty Consumer Durables (-0.9%). The Nifty PSU Bank and Nifty Oil & Gas were the major gainers which were up 1.4% and 1.1% respectively. Meanwhile, India's net direct tax collection grew 24% to Rs8,770bn in the Apr-Nov of FY23. With this, the direct tax collection has reached around 61.8% of the full-year Budget Estimates (BE) for FY23. The RBI raised interest rates by 35bps in its earlier meeting and FED is also expected to continue with its monetary policy tightening. The European Central Bank too will hold a meet to decide on new interest rates. The global economy continues to face inflationary pressures though the recent commodity and food price softening may boost demand going ahead. However, central banks are expected to raise interest rates until they achieve their targeted level. The movement of rupee against the dollar, FII flow and crude oil prices to decide the trend in the near term.

The markets are likely to see gap up opening; SGX Nifty is up 128 points compared to previous spot Nifty closing. Asian Markets are trading in green; Nikkei is up 0.4% while Heng Seng is up 0.8%.

Source : Equity Bulls

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