Post-market views - July 10, 2023 - Reliance Securities

Mr. Vikas Jain, Senior Research Analyst at Reliance Securities.

Indian equities ended slightly higher amid mixed trends in global markets. Nifty was up 0.1%. Broader markets underperformed the main index as Nifty Mid Cap and Nifty Small Cap were down 0.4% and 0.3% respectively. Majority of sectoral indices ended in red. Nifty Metal (+1.7%) and Nifty Oil & Gas (+0.6%) were the major gainers. Nifty IT (-1.2%), Nifty Media (-0.95%) and Nifty Consumer Durables (-0.8%) were the primary laggards.

US stocks ended lower after new data showed a slowdown in US jobs growth. Wall Street's benchmark S&P 500 lowered 0.3%, the tech-dominated Nasdaq Composite lost 0.1%, DJIA was down 0.6%. For the week S&P, Nasdaq and DJIA were down 1.2%, 0.9% and 2% for the week. The US economy added 209,000 jobs in June, undershooting expectations for the first time in 15 months. Figures for the previous two months were also revised lower. Separate jobs data from the ADP Research Institute earlier this week prompted a sell-off across stock and bond markets as investors feared the Fed would need to be even more aggressive with future rate rises to bring inflation under control.

Investors await on earnings results while, the 50th GST Council meet that takes off on July 11. Budgetary support for hilly states and cess on multi utility vehicles are likely to be taken up by the high-powered Council. Further the economy, is getting a capex push from India Inc as companies get down to pumping up spend amid rising demand. With much of the Rs 2000 notes back in the system and the government getting into spending overdrive, surplus liquidity has shot past the Rs 2 lakh crore mark which provides a big internal support for the central bank.

Source : Equity Bulls

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