Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped a two-day winning streak on April 22, impacted by the hint by Fed Chair Powell about an imminent rate hike of 50 bps in June. Nifty opened with a downgap, rose in the morning to make an intra day high at 1120 Hrs. It went sideways till 1400 Hrs post which it sold off. At close Nifty was down 1.27% or 220.7 points at 17171.9.
Volumes on the NSE continue to be on the lower side. Among sectors, Realty, Metals, Banks and Healthcare indices fell the most while there were no gainers. BSE Smallcap and Midcap indices outperfomed falling 0.38-0.71%.
World stocks fell to five-week lows on Friday as investors fretted about rate hikes in the United States and the euro zone impacting equity values across the globe despite some encouraging corporate results.
The latest figures from the UK's Office for National Statistics (ONS) showed that retail sales slumped 1.4% in March amid a sharp cost of living crisis in the country, trailing behind the 0.3% decline economists were expecting.
UBS has downgraded its GDP growth forecast for India for the current financial year from 7.7 to 7.0 percent in one of the lowest expectations by economists. According to UBS, high global commodity prices, slower global growth, hit to domestic demand from the income shock of high fuel prices and elevated inflation, and the risk of the central government diverting money from capital expenditure towards subsidies will cause the Indian economy to grow at a slower clip this year than previously expected.
Equity markets in India remained torn between hopes for an early end to the geopolitical uncertainty and fears of faster monetary tightening. On daily charts, Nifty fell and filled the upgap made on the previous day, thus negating the bullishness. On weekly charts Nifty fell for the second week in a row falling 1.74%. Nifty has formed a doji on weekly charts after a fall suggesting possible halt to the downmove, unless the lows of 16824 are breached. We could see sideways consolidation in the coming week between 16958 to 17392.