Post Market views - Jan 19, 2023 - Reliance Securities

Mr. Mitul Shah - Head of Research at Reliance Securities.

Indian equities closed lower following weakness across global markets. Nifty shed 0.3% while Nifty Mid Cap and Nifty Small Cap were down 0.1% and 0.5% respectively. Most sectoral indices ended in red except Nifty Oil & Gas (+0.5%) and Nifty PSU Bank (+0.3%). Nifty Media and Nifty FMCG were the major laggards which were down 1% and 0.9% respectively.

US equities fell after a fresh batch of economic data offered worrying signs of how the economy is weathering the Federal Reserve's tightening campaign. The S&P 500 shed 1.6%, Dow Jones was down 1.8% while Nasdaq lost 1.2%. Data showed retail sales fell 1.1% in December, with higher interest rates and inflation hurting spending on vehicles, gasoline and furniture. Wholesale price inflation fell to its slowest pace since March 2021. The yield on the 10-year Treasury note slid to 3.374% from 3.534% Tuesday.

The earning is picking momentum with healthy revenue growth and the market is following the management commentary for further cues. 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. 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.

Source : Equity Bulls

Keywords

PostMarketViews RelianceSecurities Nifty Sensex