Post Market views - April 5, 2022 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities.

Domestic equities closed lower due to steep decline in financial sector. Nifty lost 0.5%, while broader markets outperformed the main indices with Nifty MidCap and Nifty SmallCap gaining 1.4% and 1.1% respectively. Most sectoral indices ended in green. Nifty FMCG gained the most at 1.3% followed by Nifty Auto which was up 1.2%. Nifty Fin Service, Nifty Pvt Bank and Nifty Bank were the major laggards which dipped 1.6%, 1.5% and 1.47% respectively.

U.S equities ended higher led by a rally in tech sector. The Dow Jones rose 0.3%, the S&P 500 gained 0.8% and the tech-heavy Nasdaq Composite added 1.9%. The yield on 10-year Treasury notes ended at 2.4%. Moreover, the U.S. dollar strengthened post talks of additional sanctions against Moscow following an international outrage over massacre of Ukraine civilians. The prospect of more sanctions led to a rise in oil prices. Brent crude jumped ~3%, to settle at $107.5 a barrel.

Markets continue to remain jittery as investors try to gauge the effects of Russia-Ukraine war, whilst simultaneously mulling over the possibility of FED raising interest rates even further to curb inflation. Additionally, rising oil and commodity prices are threatening supply-chain and logistics by disrupting shipping and air freight. The Chinese economy continues its battle with rising coronavirus infections. While the world awaits the resolution of the Russia-Ukraine crisis, over near-term, devastation due to the war and additional sanctions on the Russian economy, would have menacing effects on global and Indian equities.

Source : Equity Bulls

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