Post Market views - June 13, 2023 - Reliance Securities

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

Indian equities ended higher following positive global cues. Nifty was up 0.6%. Broader market outperformance continued with the Nifty Mid Cap and Nifty Small Cap up by 1.2% and 0.7% respectively. The Nifty Small Cap hit an all-time high in the session. All of the sectoral indices ended in green except Nifty Auto (-0.1%). Nifty Realty (+3%), Nifty Media (+1.8%) and Nifty Consumer Durables (+1.4%) were the major gainers.

US stocks advanced to their highest level in more than a year, with investors adding to a rally powered by shares of large tech companies. The blue-chip S&P 500 increased 0.9%, the tech-heavy Nasdaq Composite rose 1.5% to a level that was also the highest in almost 14 months. The Dow was up 0.6%. The gains have been pronounced in the semiconductor and software industries, which have advanced 33% and 19% in the past 12 months, respectively, with recent enthusiasm for artificial intelligence boosting their performance. The yield on the 10-year treasury note ended at 3.72%.

India's retail inflation in May eased to a 25-month low of 4.25%, below estimates of 4.4%. April IIP jumped to 4.2% from 1.1% in March. Markets will draw cues from the upcoming FED policy meeting. Recently, the RBI monetary policy committee held the repo rate unchanged at 6.5%. It also remained focused on withdrawal of accommodation. RBI revised down the inflation forecast for FY24 from 5.2% in April policy to 5.1%, amid recent dips in inflation readings. Inflation print is expected to remain above 4% target for FY24 while there are upside risks to food and commodity prices from potential supply cuts. The monsoon has arrived in India and is making good progress in the rest of the country. The US May CPI is due today evening.

Source : Equity Bulls

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