Daily Market Commentary - Dec 20, 2022 - Bonanza Portfolio

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

Indian indices opened on negative note with Nifty below 18400. At the time of closing, Indices ended marginally lower with Sensex down by 103.90 points or 0.17% to close at 61,702.29 and Nifty was down by 35.15 points or 0.19% to close at 18,385.30.

During the day, The India VIX index, maintained by the National Stock Exchange, surged 9% on December 20. The index is calculated by looking at the movement in the prices of options contracts of the Nifty 50 index. India's domestic air traffic rose 11% YoY to 116.79 lakh passengers in November. The air traffic, however, was still lower than pre-COVID levels. During the January-November 2022 period, domestic air carriers carried 1,105.10 lakh passengers, up from 726.11 lakh in the year-ago period, an annual growth of 52%. The Indian government is likely to waive some tax norms for the buyer of IDBI Bank in a bid to attract more suitors for a majority stake sale in the lender.

The World Bank slashed its China growth forecast for the year as the pandemic and weaknesses in the property sector hit the world's second-largest economy. The Bank of Japan (BOJ) is set to maintain ultra-low interest rates and reassure markets it will be in no rush to withdraw stimulus, even as rising inflation prods investors to price in the chance of a policy tweak next year. The People's Bank of China kept its one-year and five-year loan prime rates unchanged in December. South Korea's central bank said the country's consumer inflation would remain around 5% for some time and then gradually ease, but cautioned that domestic and global factors are raising uncertainty about how fast prices will slow. On the sectoral front, FMCG, auto, and realty are down 0.5-1%.

Nifty 50 top gainers are Adani Enterprises, TCS, Reliance, Indusind Bank, and Axis Bank while, SBI Life, Eicher Motors, UPL, Tata motors, and Bharti Airtel were among the top losers.

Source : Equity Bulls

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