Post-market views - June 26, 2023 - Reliance Securities

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

Indian equities started off the week on a positive note as Nifty was up slightly by 0.1%, while broader markets out-performed the main index as the Nifty Mid Cap and Nifty Small Cap ended 0.9% and 0.6% higher respectively. All of sectoral indices ended in green except Nifty PSU Bank (-0.2%) and Nifty Oil & Gas (-0.1%). Nifty Pharma (+1.5%), Nifty Healthcare (+1.5%) and Nifty Auto (+1.2%) were the major gainers.

U.S. stocks closed lower on Friday, after Federal Reserve Chairman Jerome Powell's testimony in which he signalled for more interest rate hikes. The Dow Jones fell 0.65%, the S&P 500 lost 0.77%, and the Nasdaq Composite dropped 1.01%. For the week, the Dow fell 1.7%, S&P 500 fell 1.4% and the Nasdaq was down 1%. Financial markets have put in a 74.4% likelihood that the Fed will resume hiking the Fed funds target rate by another 25 basis points at the July meeting. Meanwhile, the CBOE Market Volatility index, a gauge of investor anxiety settled at up 0.53 point at 13.44, bouncing off a 3.5 year low.

The delay in monsoon rains and possible onset of the El Nino form of weather in later part of this year is triggering caution among policymakers. However, rconomic activity has held up well so far in Q1FY24 and there is increased optimism on the domestic economy. During the week, the RBI will release the money supply, deposits, bank credit growth data. The central government will update the budget expenditure and deficit numbers for the month of May. On the global front the US Federal Reserve Chair Jerome Powell will deliver a speech at the European Central Bank forum on Central Banking 2023. Equity markets in India are closed on Wednesday, June 28 in the observance of Eid.

Source : Equity Bulls

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