Daily Market Commentary - June 28, 2023 - Bonanza Portfolio

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

At Opening, Sensex was up by 210.38 points or 0.33 % at 63,626.41, and Nifty was up by 58.30 points or 0.31 % at 18,875.70 while at closing, Sensex was up by 499.39 points or 0.79% at 63,915.42, and Nifty was up by 154.70 points or 0.82% at 18,972.10.

Nifty made a new all time high today, triggered by buying from institutions and retail/HNI segments. Improving US economic data and hints from China about fresh stimulus measures have helped improve sentiments. Relative earnings resilience based on strong bottom-up drivers in a difficult global macro environment and post late start, the encouraging recent progress of monsoons across India.

Upside momentum could take Nifty even higher from here and if the El Nino fears subside, we may see a more sustainable upmove. India shines as an attractive destination for investors from across the globe offering steady growth, falling inflation, better external trade/services situation, improving corporate earnings trajectory, prudent growth enhancing and fiscal policies.

The crude oil outlooks look uncertain in the short run amid the deteriorating macro fundamentals in Eurozone, the Chinese growth so far hasn't met the expected V shape recovery anticipated after curbing down the covid restrictions. The global rating agencies have revised down China's GDP forecast for rest of 2023 after release of May data.

Global central banks are concerned with higher inflation and on path for higher interest rates to contain inflation. However, the U.S. crude oil stocks declined last week and supported oil prices at lower levels.

Top gainer on Nifty were Adani Enterprises, Adani Ports, JSW Steel, Bajaj Auto and Tata Motors, while losers were HDFC Life, Tech Mahindra, Hero MotoCorp, Bajaj Finserv and M&M.

Source : Equity Bulls

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