Post Market views - May 11, 2023 - Reliance Securities

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

Indian equities ended slightly lower amid weak global cues. Nifty was down 0.1%. Broader markets however ended higher as Nifty Mid Cap and Nifty Small Cap were up 0.3% and 0.5% respectively. Majority of sectoral indices ended in green. Nifty Consumer Durables (+0.9%), Nifty FMCG (+0.5%) and Nifty Realty (+0.5%) were the major gainers. Nifty Pharma (-1.3%) and Nifty Healthcare (-1.1%) were the primary laggards.

The U.S. stocks rose as US inflation data came in line with estimates. The tech-heavy Nasdaq Composite added 1%, closing at its highest level since June. The blue-chip S&P 500 finished 0.4% higher in a choppy day of trading. The Dow ended mildly in the red. The yield on the 10-year note dropped 0.07 percentage points to 3.44% after the inflation data. Data from the US Bureau of Labor Statistics showed the US CPI for April eased to 4.9% in April, the lowest annual reading since April 2021. The CPI rose 0.4% M-o-M in April, up from 0.1% in March. Core inflation, which excludes volatile food and energy costs, dipped slightly in April to 5.5% YoY.

The markets will keep one eye on the quarterly results & the management commentary while also focusing on the US regional banking crisis, US government debt concerns, inflation and the crude oil prices. Inflation in the US is cooling with the Fed's monetary tightening taking effect. Indian bond yields have corrected by ~50bps from its peak to 7.02% lowering the borrowing cost for government and corporates. Steep correction in Brent crude prices is an additional tailwind for the Indian economy.

Source : Equity Bulls

Keywords

PostMarketViews Nifty Sensex RelianceSecurities