Post Market views - March 21, 2023 - Reliance Securities

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

Indian equities ended higher led by positive cues in global markets. Nifty was up 0.7%. Broader markets moved largely in-line with the main indices as Nifty Mid Cap and Nifty Small Cap were up 0.6% and 0.7 respectively. Majority of sectoral indices ended in green. Nifty IT (-1%) and Nifty FMCG (-0.7%) were the primary laggards. Nifty PSU Bank and Nifty Fin Services were the major gainers, up 1.7% and 1.5% respectively followed by Nifty Pvt Bank which was up 1.4%.

U.S. equities rallied on hopes of stability in the banking sector after regulators engineered a deal for Swiss banking giant UBS to take over rival Credit Suisse and major US banks considering equity investment to save the First Republic Bank. The Dow Jones ended 1.2% higher and the S&P 500 rose 0.9%. The tech-focused Nasdaq climbed 0.4%. The yield on the benchmark 10-year Treasury note ticked up to 3.49% from 3.395% on Friday.

The markets will closely follow global cues and the developments in the US and European banking system. Domestically, CPI and WPI have cooled and trade deficit has narrowed. Brent crude prices have corrected 10% since the start of the US banking crisis which coupled with the cheaper crude from Russia and the fall in natural gas and coal prices is a huge tailwind for the Indian economy. However, the unseasonal rains overnight have caused large scale crop damage across large swathes of India. This is likely to keep food prices higher in the coming months. All eyes will be on the US Fed monetary policy meeting and its interest rate decision due tomorrow.

Source : Equity Bulls

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