Mr Mitul Shah, Head Of Research at Reliance Securities.
Domestic equities closed lower following a sharp decline in global markets. Investors remain risk-averse despite FED pushing back talks of an interest rate hike larger than 50 bps in the coming months. Nifty declined 1.6%, while broader markets underperformed compared to the main indices as Nifty MidCap and Nifty SmallCap fell 1.8% and 2.3% respectively. All sectoral indices ended in red. Nifty Reality was the biggest laggard which plunged 3.5%, followed by Nifty IT and Nifty Fin Service which were down 2.3% and 2.2% respectively. Moreover, investors continue to monitor earnings results, and the news on Russia-Ukraine war and surging COVID-19 cases.
U.S. equities recorded its largest decline on Thursday, giving back strong gains recorded on Wednesday as traders continued to contemplate the Federal Reserve's monetary policy decision. The Nasdaq fell 5%, the S&P dropped 3.6%, while the Dow slid 3.1%. The yield on the benchmark 10-year Treasury note rose to 3.066%, the highest yield level since Nov'18. Brent crude, rose 0.7% to end at $110.90 a barrel marking its largest one-day gain in more than three weeks, after the European Union proposed a ban on imports of Russian crude within the next six months and on refined oil products from the country, by the end of the year.
GST has peaked to an all-time high of Rs1.68 lakh crore in April 2022. For FY22 as a whole, total GST collections amounted to Rs14.83 lakh crore, up 30%. Meanwhile, markets await on the next batch of quarterly results in the coming weeks. The Indian economy has shown signs of growth and recovery across the board, despite elevated input and labour costs and ongoing supply chain disruptions. Moreover, trend in global stock markets and the movement of rupee and crude oil prices, will dictate market trend in the near-term.