Post Market views - June 14, 2023 - Reliance Securities

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

Indian equities ended higher following positive global cues. Nifty was slightly up 0.2%. Broader market moved in tandem with the main index as the Nifty Mid Cap and Nifty Small Cap were up by 0.2% and 0.1% respectively. Sectoral indices ended mixed. Nifty Metal (+1.4%), Nifty Oil & Gas (+0.9%) and Nifty Consumer Durables (+0.5%) were the major gainers. Nifty media (-0.6%) and Nifty Fin Service (-0.4%) were the primary laggards.

US stocks rallied after the pace of US inflation eased to its lowest level in more than two years, bolstering investors' bets that the Federal Reserve will not raise interest rates in today's FOMC meeting. The blue-chip S&P 500 increased 0.7%, the tech-heavy Nasdaq Composite index rose 0.8% to a level that was also the highest in almost 14 months. The Dow was up 0.4%. The latest US consumer price index report showed headline inflation slowed to 4% YoY in May, down from 4.9% in the previous month, marking its lowest level since March 2021. The yield on the 10-year note rose to 3.81%.

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. The May WPI at -3.5% continued its declining trend which is likely to seep into the CPI in the coming months. The US FOMC meeting is scheduled today night. Consensus estimates are that the Fed would pause in its current rate hike cycle. Markets will closely track the commentary from Fed chair Jerome Powell on the future path of interest rates.

Source : Equity Bulls

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