Post Market Views - Jan 18, 2023 - Reliance Securities

Mr. Mitul Shah - Head of Research at Reliance Securities

Indian equities closed higher with Nifty gaining 0.6%. Broader markets under-performed the main indices as Nifty Mid Cap and Nifty Small Cap were up 0.5% and 0.1% respectively. Most sectoral indices ended in green. Nifty Metal (+1.7%) and Nifty Fin Service (+0.8%) were the major gainers while Nifty PSU Bank and Nifty Oil & Gas were the major laggards which were down 1.3% and 0.1% respectively.

U.S. equities closed lower following earnings from two of the big banks and Chinese data that showed a near-historic slowdown in economic growth. The S&P 500 fell 0.2%, Dow Jones declined 1.1% while Nasdaq gain minor 0.1%. The S&P 500 is up ~4% so far this year, and market is looking for signs to rally further. The yield on the benchmark 10-year Treasury note was 3.533% versus 3.510% Friday.

The market to follow the management commentary for further cues. IT services companies till now, managed to exceed Street expectations on revenue growth. However, companies warned about delays in decision-making by clients. Most companies scaled down hiring stoking revenue growth slowdown concerns. India's retail inflation eased to 5.72% YoY in Dec '22 as against 5.88% in Nov '22 aided by an easing of food prices which account for nearly 40% of India's CPI basket. Food inflation for Dec'22 eased to 4.19%. Meanwhile, India's IIP grew 7.1% YoY in the month of Nov'22.

Source : Equity Bulls

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