SGN Nifty up 110 points, market likely to open up - Jan 12, 2023 - Reliance Securities

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

The U.S. equities closed higher on expectation of muted interest-rate hikes. The S&P 500 ticked up 1.3%, the Dow Jones added 0.8%, while Nasdaq Index advanced 1.8%. The market is looking for December inflation print, which the Labor Department will release on Thursday. Economists' survey expects consumer prices to have risen 6.5% annually, down from 7.1% a month earlier. Meanwhile, data from CME group shows that there is a 77% chance that the central bank will raise rates by 25bps. The yield on the benchmark 10-year U.S. Treasury note fell to 3.554%, from 3.618% Tuesday.

Indian equities closed lower after positive opening. Nifty fell 0.1% while Nifty Mid Cap and Nifty Small Cap were down 0.3% and 0.1% respectively. Sectoral indices ended mixed. Nifty PSU Bank (+0.7%) and Nifty Metal (+0.8%) were the major gainers. Nifty FMCG lost the most at 1.1% followed by Nifty Healthcare and Nifty Pharma which were down 0.8% and 0.7% respectively. The market is awaiting on the 3QFY23 earnings result for further cues. The inflation in the US, Europe and other economies may have peaked out. Meanwhile, central banks across the globe are pushing ahead with unwinding of their pre-COVID ultra-loose monetary policies, though at a slower pace. While the Indian markets have remained resilient as compared to the global economy, the RBI is expected to continue raising rates in the near term. India is expected to maintain healthy pace of GDP growth of ~7% over the next few years and would remain among the fastest growing economies globally this decade.

The markets are likely to see gap up opening; SGX Nifty is up 110 points compared to previous spot Nifty closing. Asian Markets are trading in green; Nikkei is up 0.1% while Hang Seng is up 0.7%

Source : Equity Bulls

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