Post-market views - Aug 17, 2023 - Reliance Securities

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

Indian equities ended lower following weak cues in the global markets. The Nifty was down 0.5% while Nifty Mid Cap and Nifty Small Cap ended 0.3% and 0.1% higher respectively. Sectoral indices ended mixed. Nifty PSU Bank (+1.4%) and Nifty Consumer Durables (+1.8%) were the primary gainers. Nifty FMCG (-0.9%) and Nifty Oil & Gas (-0.8%) were the major laggards.

Meanwhile, the People's Bank of China unexpectedly lowered interest rates by 15bps to bolster an economy that's facing fresh risks, stoking concerns about the impact on global growth. Concern of 15-month high domestic July inflation and continued FIIs selling may have a negative impact on domestic bourses. FIIs were net sellers of nearly Rs10,000cr during the month of August.

CPI Inflation Spikes To 15-Month High - The Consumer Price Index-for the month July reported at 15-month high of 7.44% compared with 4.87% in June while expectation was 6.50%, largely led by food prices (Tomato price) . CPI Inflation in July breached the upper end of the central bank's 2%-6% target range in July for the first time in five months and by a wide margin. July WPI-based inflation comes at -1.36% as food prices skyrocket - Wholesale price index (WPI)-based inflation in July came in at (-)1.36 per cent, significantly high than (-)4.12 per cent reported in June on account of the rising price of food.

Source : Equity Bulls

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