Mr Mitul Shah, Head Of Research at Reliance Securities.
Domestic equities ended its positive streak and closed lower following weak global cues. Nifty declined 1.3%, while broader markets out-performed the main indices with Nifty MidCap and Nifty SmallCap decreasing by 0.9% and 0.3% respectively. All sectoral indices ended in red. Nifty Bank fell the most at 2.1% followed by Nifty PSU Bank which was down 2%. Moreover, investors also followed the news on the Russia-Ukraine war which is about to enter its second month and rising COVID infections in China.
U.S equities ended lower after Federal Reserve Chair Powel's comments on the possibility of a 50 bps increase in interest rates. The Dow Jones plummeted 1%, while the S&P 500 index fell 1.5%. The tech-heavy Nasdaq tumbled 2.1%. The 10-year Treasury yield jumped by 8 bps to 2.92%, recording its highest level since late 2018. U.S. crude oil prices rose 1.6% to end at $103.79 per barrel. Moreover, the U.S central bank will meet on May 3rd - May 4th to approve the series of rate hikes, to quickly tackle the inflationary pressures.
Meanwhile, investors await on earnings reports for further cues and keeping tabs on the news flow of the Russia-Ukraine crisis and rising COVID infections in China. Moreover, trend in global markets, the movement of rupee and crude oil prices will dictate the trend in the near term. The world continues to witness the developments on the Russia-Ukraine war, which is disrupting supply chain and logistics. Over the near-term, war issue and sanctions on Russian products would have high negative bearings on global and Indian equities.