Daily Market Commentary - May 5, 2023 - Bonanza Portfolio

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

At opening, Sensex was down by 358.87 points or 0.58% at 61,390.38, and Nifty was down by 89.00 points or 0.49% at 18,166.80.At closing, Sensex was down by 700 pts, Nifty was at around 18,050.

Today, HDFC was one the reason for decline in market. HDFC's weight is 6.74 % in MSCI (Morgan Stanly capital international) India Index but preliminary calculations indicate that the merged entity will likely have a lower weight of about 6.5 %. Previously, the adjustment factor for computing the weight of merged entity was 1x. Now, MSCI says it will be 0.5x. So, it was earlier expected that the merged entity would see $3 billion inflow. Now, MSCI's tweak could result in $150-200 million outflow. Nifty Metal falls over 1% on losses in Tata Steel, JSW Steel and Hindalco.

Oil headed downside for a third straight week, the longest losing run this year, as slowdown concerns and turmoil in the US banking sector spooked investors to flee from risk. West Texas Intermediate advanced above $69 a barrel on Friday, but the US crude benchmark has still retreated by close to 10% this week after a four-day skid.

The surge in gold prices continues for another day, as the yellow metal gained 0.49% and conclude at 2051.1$ per ounce. With this strong momentum, gold is on track for its highest weekly rise in almost two months, as anticipation of a pause in the US Federal Reserve's rate hiking cycle and banking concerns boosted the safe-haven metal's attractiveness.

Titan, Maruti, Ultratech Cement, Nestle, Apollo Hospital were the top gainer while HDFC bank, HDFC, Indusind bank, Hindalco, Tata Steel were top loser.

Source : Equity Bulls

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