Daily Market Commentary - June 16, 2023 - Bonanza Portfolio

Mr. Rajesh Sinha, Sr. Research Analyst, BONANZA PORTFOLIO LTD

At opening, Sensex was up by 195.71 points or 0.31% at 63,113.34, and Nifty was up by 57.90 points or 0.31% at 18,746 while At closing, Sensex was up by 466.95 points or 0.74% at 63,384.58, and Nifty was up by 137.90 points or 0.74% at 18,826.

The Indian rupee strengthened past 82 mark to hit a five-week high against the US dollar amid continued buying from foreign investors in the local equity markets. The domestic currency opened at Rs 81.97 a dollar.

According to analysts, the rupee gained on the possibility of FTSE inflows. The FTSE index as well as the Sensex will see rebalancing taking place on June 16, which will result in some inflows during the session.

India is likely to receive net inflows of around $250 million to $270 million courtesy of the FTSE rebalancing. Since March 28, foreign investors have bought nearly $8 billion in local equities.

Indian equity markets continued to rise along with rally in the global markets. Sensex 30 and Nifty 50 gained ~1% this week. Majority of sectors posted positive returns with some sectoral indices making a fresh 52-week high. BSE Realty, BSE Metals, BSE Healthcare and BSE FMGC indices were amongst the top performer this week.

Globally markets reacted to US Fed meeting outcome. In its latest meeting, the US Fed announced a pause in interest rate hikes while suggesting that some further increases in rates may be required in 2023 to bring inflation below 2% over time. The ECB raised their benchmark policy rate by 25 basis points and indicated further policy tightening. European stock markets were higher Friday as investors digested the latest monetary policy decision from the European Central Bank.

US dollar and treasury yields supported gold prices to recover from their intraday lows. The US dollar has dropped to a fresh four-week low after hawkish comments from the European Central Bank president that another interest-rate hike is likely in July.

On the domestic economy front, May 2023 CPI inflation at 4.25% surprised on the downside and trade deficit in May 2023 widened from April 2023 levels amid a sharp rise in non-oil imports. Net FPI inflows so far this week has been positive.

Top gainers were HDFC Life, SBI Life Insurance, Bajaj Finserv, Dr Reddy's Laboratories and Titan Company, while losers were Wipro, Bajaj Auto, TCS, BPCL and ONGC.

Source : Equity Bulls

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DailyMarketCommentary Nifty Sensex BonanzaPortfolio