Daily Market Commentary - Jan 20, 2023 - Bonanza Portfolio

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

Indian indices opened on flat note on today. At the time of closing, the Sensex was down 236.66 points or 0.39% at 60,621.77, and the Nifty was down 80.10 points or 0.44% at 18,027.70.

During the day, Most Asian equity markets edged higher, while the U.S. dollar hung near its weakest level since May, with investors fretting about the risks of a global recession as the Federal Reserve presses on with interest rate increases. Tata Motors, which dominates the electric vehicle segment in the Indian market, has plans to raise $500-600 million from global investors for the EV business. Metals and mining conglomerate Vedanta will sell its international zinc assets in South Africa and Namibia to subsidiary Hindustan Zinc for $2.98 billion. The transaction would be an all-cash deal completed in a phased manner over 18 months. Moody's affirmed Baa3 long-term rating on SBI and upgraded the long-term rating of Canara, Bank of Baroda & Punjab National Bank (PNB) to Baa3 from Ba1. However, the outlooks on the long-term rating of all four PSU banks remained stable.

U.S. Treasury yields remained elevated in Tokyo after bouncing off four-month lows overnight. Japanese government bond yields stayed depressed, for two days after the Bank of Japan defied investor pressure to loosen yield curve controls further. The U.S. dollar struggled for direction as fears of an economic slowdown dented risk sentiment, while the yen slipped as speculation continue to swirl that the Bank of Japan will eventually move away from its ultra-easy policy. On the sectoral front, Metal and FMCG indices down nearly 1 percent each.

Nifty 50 top gainers are Coal India, HDFC Bank, Power Grid Corporation, HDFC, and ITC while HUL, Asian Paints, Bajaj Finance, HDFC Life, and Nestle India were among the top losers.

Source : Equity Bulls

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