Daily Market Commentary - June 21, 2023 - Bonanza Portfolio

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

Sensex was up by 89.02 points or 0.14 % at 63,416.72, and Nifty was up 12.20 points or 0.06 % at 18,828.90 while At close, Sensex was up by 195.45 points or 0.31 % at 63,523.15, and Nifty was up by 40.10 points or 0.21% at 18,856.80.

Sensex reaching a new all-time high in spite of several challenges from the global front. With the PM's visit to the USA, we really hope things will be even better for our economy going ahead, and one needs to see if the current upsurge will continue going ahead. We are waiting for the June quarterly results to trickle in with hopes that it would be by and large in sync with expectations. Despite a choppy trend in FII flows so far, there will be huge interest of foreign investors going ahead.

After almost an 8-month consolidation, the Sensex has hit an all-time high. World inflation has fallen fast and importantly, key inputs like Oil, natural gas, lumber, palm oil, steel, coal have come off significantly. The interesting part is that these price drops look sustainable, because they seem to have come on the back of reinstatement of disrupted supply, rather than demand destruction. The supply chain index that we track is back to pre-pandemic level. Global Central bankers are close to the peak of their rate hike cycle. In fact 20 out of 23 countries tracked on Bloomberg may begin to see rate cuts in 2024.

India stands out in a slowing world and a weakened China. The government's thrust of infrastructure, including digital public infra, and pick up in private consumption through rise in credit offtake, will help the India story chug along.

Among sectors, Metal index was down by 1 %, FMCG index was down by 0.4 % and Realty index was down by 0.3 %, while Power index was up by 1 % and Oil & gas index rose 0.5%.

Power Grid Corporation, ONGC, HDFC Bank, Adani Ports and HDFC were among the top gainers, while losers were JSW Steel, Hindalco Industries, M&M, Divis Laboratories and ITC.

Source : Equity Bulls

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