Post-Market views - June 15, 2023 - Reliance Securities

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

Indian equities ended lower with the benchmark Nifty 50 down 0.4%. Broader market outperformed with both the Nifty Mid Cap and Nifty Small Cap closing 0.2% in the green. Sectoral indices ended mixed. Nifty Pharma (+1.4%) and Nifty Healthcare (+1.6%) were the major gainers followed by Nifty Consumer Durables (+0.5%) and Nifty FMCG (+0.5%). Nifty PSU Bank (-2%), Nifty Bank (-1.2%) and Nifty Fin Service (-1.0%) were the primary laggards. Nifty Realty (-0.8%) and Nifty IT (-0.5%) were the other major losers.

US stocks were muted on Wednesday after the Federal Reserve held interest rates steady following 10 consecutive increases. Wall Street's benchmark S&P 500 closed out a choppy session with a 0.1% gain, while the tech-heavy Nasdaq Composite added 0.4%. The Dow ended 0.7% lower. The FOMC kept rates unchanged at the range of 5-5.25%. The yield on the benchmark 10-year note ended lower at 3.8%. Meanwhile, data showed that US producer prices rose 1.1% YoY in May, less than expectations and the slowest increase in more than two years.

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. In the US report showed that consumer price index headline inflation slowed to 4% YoY in May, down from 4.9% in the previous month, marking its lowest level since March 2021. While, the FOMC kept the interest rates unchanged at 5-5.25%, the FED signalled its support for two more interest rate rises this year, including one that could be implemented at its next meeting in July, even as it skipped an increase for the first time in more than a year.

Source : Equity Bulls

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