Post-market views - June 28, 2023 - Reliance Securities

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

Indian equities closed higher following positive cues in the global markets as Nifty was up by 0.8%, while broader markets under-performed the main index with the Nifty Mid Cap and Nifty Small Cap, up 0.6% and 0.4% respectively. All of sectoral indices ended in green except Nifty Media (-0.7%). Nifty Pharma (+1.5%), Nifty Metal (+1.4%) and Nifty Healthcare (+1.1%) were the major gainers.

U.S. stocks rose after the release of economic data that highlighted the continued resilience of the US economy despite a higher interest rate environment. The S&P 500 closed 1.1% higher, while the tech-focused Nasdaq Composite rose 1.6%, both rebounding from two successive sessions of declines. The Dow was 0.6% higher. The yield on 10-year treasury was largely flat at 3.77%. Meanwhile, the European Central Bank president indicated there would be another rate rise in the eurozone in July. The ECB in June raised its benchmark deposit rate by a quarter point to 3.5%, its highest level in 22 years.

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, economic activity has held up well so far in Q1FY24 and there is increased optimism on the domestic economy. 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 Thursday, June 29th in the observance of Eid.

Source : Equity Bulls

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