Daily Market Commentary - August 26, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened higher with Nifty above 17600 on the back of positive global cues. At the time of closing the Sensex was up 59.15 points or 0.10% at 58,833.87, and the Nifty was up 36.40 points or 0.21% at 17,558.90.

During the day, Market ends higher amid volatility. S&P Global Ratings has raised its inflation forecast by 0.50% points to 6.8% for 2022-23, citing higher commodity prices, rising interest rates and foreign exchange volatility, although it also said India has ample foreign exchange reserves to withstand pressure on creditworthiness. Retail lending rises in 2022, NBFCs disbursed the highest number of loans, disbursed 12 cr. of loans from April 2021- March 2022 and registered a 64% growth from April 2020 - March 2021.

Asian shares rose, buoyed by news of possible progress for China and the United States to hammer out an audit deal. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6% in early Asia trade, driven by Chinese tech shares listed in Hong Kong that surged 1.3%. Hong Kong shares of Alibaba were up 4%. That helped the Asian index eke out a 0.4% gain for the week. Hong Kong's Hang Seng Index rose 0.7%, Japan's Nikkei advanced 0.9%, while South Korea gained 0.5%.

The dollar held onto recent gains against the euro and sterling ahead of Federal Reserve Chair Jerome Powell's widely-anticipated speech, which traders hope will offer clues on the U.S. central bank's tightening plans. Oil prices rose in early trade on signs of improving fuel demand, though gains were capped as the market awaited clues. On the sectoral front, capital goods, metal, power and PSU Bank indices added 1 percent each.

Nifty 50 top gainers are Grasim Industries, NTPC, JSW Steel, Adani Ports and Titan while losers included Eicher Motors, Bharti Airtel, IndusInd Bank, Asian Paints and HDFC.

Source : Equity Bulls

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