Daily Market Commentary - June 23, 2023 - Bonanza Portfolio

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

At opening, Sensex was down by 141.82 points or 0.22% at 63,097.07, and Nifty was down by 50.10 points or 0.27% at 18,721.20 while at closing, Sensex was down by 259.52 points or 0.41% at 62,979.37, and Nifty was down by 105.80 points or 0.56% at 18,665.50.

Gold witnessed some recovery after a sharp correction in the past few sessions, as prospects of additional interest rate hikes by the U.S. Federal Reserve this year weighed on bullion's. Governor Powell in his second day of testimony said the U.S. central bank would move interest rates at a "careful pace" from here as policymakers edge towards a stopping point for their historic round of monetary policy tightening.

U.S. jobless claims, meanwhile, held steady at a 20-month high last week, potentially signaling a softening labour market in the face of the Fed's aggressive rate hikes. The BoE raised interest rates by 50bps twice more than forecast - saying it needed to act against "significant" indicators that British inflation would take longer to fall.

Oil dropped for a second day on Friday and was heading for a weekly decline, as a UK interest rate hike added to concern over economic growth that outweighed lower U.S. crude stocks and other signs of tighter supplies., Indian equity markets continued their recent run up even while global equity markets witnessed volatility. Net FII flows remained positive and FII's have been net buyers of Indian equities to the tune of USD7.5bn CYTD.

Accenture's Q3 showed reduced order intake growth Commentary around dampening in small projects raise concerns of slowdown for IT Maintain cautious stance on H1FY24 There is possibility to accumulate companies on potential correction over coming months.

Among sectors, Metal, Oil & Gas, Power, Capital goods, Information Technology and PSU Bank down 1-2 %, while Auto, Realty and FMCG down by 0.5 % each.

Biggest losers on Nifty were Adani Enterprises, Adani Ports, BPCL, Hindalco Industries and Divis Labs, while gainers were IndusInd Bank, Dr Reddy's Laboratories, Bharti Airtel, Asian Paints and NTPC.

Source : Equity Bulls

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DailyMarketCommentary BonanzaPortfolio Nifty Sensex