Post-market views - July 4, 2023 - Reliance Securities

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

Indian equities ended higher amid positive global cues with the Nifty up 0.7%. Nifty Mid Cap plunged 0.2% and Nifty Small Cap was up 0.3%. Majority of sectoral indices ended in green. Nifty PSU Bank (+1.9%), Nifty IT (+1%) and Nifty Media (+0.8%) were the major gainers. Nifty Auto and Nifty Oil & Gas were the major laggards which were down 0.5% and 0.7% respectively.

US stocks edged higher on Monday led by a rally in tech stocks and renewed investors' concerns over US economic growth. The S&P500 index closed up 0.1% and the Nasdaq Composite finished 0.2% higher. The Dow was largely flat. The economic worries overshadowed a 6.8% rise in Tesla after the electric-carmaker beat expectations with its second-quarter results. US trading in New York was subdued in a shortened session ahead of the Independence Day holiday. The ISM manufacturing index, fell to 46 in June, its lowest level in three years and below the 47 forecast of economists polled by Reuters.

The rate pause decision by the Reserve Bank of India and US Federal Reserve, in view of declining inflation, breathed new life into markets. Investor interest was reclaimed by a revival of the monsoon and positive sentiment in global markets. European markets joined the global stock market rally but with trepidation as investors kept a close eye on central bank commentary to continue the fight against inflation. In the coming week, data points on India's manufacturing and services sector will be released that will provide further cues.

Source : Equity Bulls

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