Post Market views - Feb 23, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities ended lower after positive opening. While Nifty declined by 0.17%, broader markets outperformed the main indices with Nifty Midcap and Nifty Smallcap increasing by 0.33% and 0.67% respectively. Most sectoral indices ended in green. Nifty Reality increased the most by 3.2% followed by Nifty PSU Bank (+1%). Nifty Auto declined by 0.2%. There is hopes that the sanction by the west may not hit Russian oil supplies.

US equities cut-off losses as President Biden announced modest sanctions against Russia but faded again into the close. The Dow Jones fell 1.4%. The S&P 500 index gave up 1% while the Nasdaq composite sank 1.2%. The 10-year Treasury yield rose 2 basis points to 1.95%. President Joe Biden called Russia's move to deploy military units to separatist regions of Ukraine as the beginning of a Russian invasion. This led to deterioration of diplomatic resolution for tensions between Russia and Ukraine. The escalating tensions between Russia and Ukraine and potential price hikes due to the same, could create a further communication and policy complexity for the central bank.

The geopolitical pot is boiling. If that is no enough, the Fed's aggressive tone on rate hike is keeping market participants on the edge. The LIC's upcoming IPO is India's biggest ever public listing and it continues to make waves. As the ball gets rolling with mega roadshows to connect with top-notch investors, the IDBI Bank stake sale comes up next on the Centre's check list. As the economy looks to get on to the running track, the ongoing disinvestment process will for sure come as a shot in the arm for the government.

Source : Equity Bulls

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