US stocks advance on Thursday as debt ceiling bill passed - Pre-Market Views - Reliance Securities

Mitul Shah - Head of Research - Institutional Desk, Reliance Securities Ltd

US stocks advanced on Thursday after the U.S. House passed a debt ceiling bill in a crucial step to avoid a default, with the measure moving to the Senate. The Dow Jones ended 0.5% higher, the S&P 500 gained 1% while the Nasdaq rallied 1.3%. The debt ceiling bill was passed by the Senate post the market close.

Indian equities ended flattish with the Nifty ending 0.3% lower. Broader markets continued their outperformance and ended in green as Nifty Mid Cap and Nifty Small Cap were up 0.2% and 1.0% respectively. Sectoral indices ended mixed. Financials were under pressure for the second day in a row with the Nifty Bank down 0.8% and Nifty Financial Services ending 0.6% lower. Nifty Realty rallied 1.1%, Nifty Healthcare was up 1% while Nifty Auto was up 0.4%. Nifty Metal and Nifty FMCG ended flat.

India's GDP growth accelerated in 4QFY23 to 6.1% YoY beating estimates of 5.1%. The full year FY23 GDP growth also beat estimates coming in at 7.2% (vs est 7.0%). The government also met the fiscal deficit target (6.4% of GDP) in FY23 aided by buoyant tax receipts and some fiscal headroom from lower payments. The growth in eight core infrastructure industries moderated to 3.5% YoY in April is after hitting a five-month low of 3.6% YoY in March due to a decline in the output of crude oil, natural gas, refinery products and electricity. The markets will rejoice the positive surprise from the GDP numbers and the government meeting the fiscal deficit target in FY23. The RBI monetary policy is due next week.

The markets are likely to see gap up opening; SGX Nifty is 75 points higher. Asian Markets are trading higher, Nikkei is up 0.7% higher and Hang Seng is 3.3% higher.

Source : Equity Bulls

Keywords

PreMarketViews USMarkets Stocks DebtCeiling Nifty Sensex RelianceSecurities