Daily Market Commentary - April 13, 2023 - Bonanza Portfolio

Mr. Rajesh Sinha, Sr. Research Analyst, BONANZA PORTFOLIO LTD

Indian indices opened lower amid weak global cues. At the time of closing, the Sensex was up 38.23 points at 60,431.00, and the Nifty was up 15.60 points at 47,828.

During the day, India's industrial output grew by 5.6% in February. India's headline retail inflation rate crashed below the Reserve Bank of India's 6% upper-bound in March. Consumer Price Index inflation fell to 5.66% in March from 6.44% in February. The Reserve Bank of India is likely to maintain the status quo on rates in the upcoming monetary policy in June as March Consumer Price Index inflation fell below the upper tolerance band of 6%. The India Volatility Index, commonly known as the "fear index," is close to a 20-month low, indicating that investors are bullish in their outlook for the stock market. HDFC Bank has signed a Master Inter Bank Credit Agreement with the Export-Import Bank of Korea for a $300 million line of credit. The pact was signed at GIFT City, Gujarat. This will help HDFC Bank raise foreign currency funds which it would extend to Korea-related businesses.

China's exports rose in March for the first time in 6 months, as the world's second-largest economy continued its economic recovery following the end of onerous coronavirus curbs late last vear. Total exports soared 14.8% Y-o-Y, a sharp rise from last March when strict virus lockdowns crippled normal economic activity. US consumer prices barely rose in March as the cost of gasoline declined, but stubbornly high rents kept underlying inflation pressures simmering, likely ensuring that the Federal Reserve will raise interest rates again next month. The Consumer Price Index climbed 0.1% last month after advancing 0.4% in February. The dollar was on the back foot after cooler-than-anticipated U.S. inflation data lifted risk sentiment and stoked expectations that the Federal Reserve will be done with its monetary tightening after hiking one last time next month. On the sectoral front, IT index shed 2%, while capital goods, pharma, and oil & gas indices were down 0.5% each. PSU Bank and Realty indices rose 1%each.

Nifty 50 top gainers are Indusind Bank, HDFC Life, Eicher Motors, Apollo Hospitals and Power Grid Corp while Infosys, HCL Technologies, Tech Mahindra, NTPC, and TCS were among the top losers.

Source : Equity Bulls

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