Daily Market Commentary - August 30, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened on a positive note with the Nifty above 17400. At the time of closing, Sensex was up by 1564.45 points or 2.70% at 59,537.07 & Nifty was up by 446.40 points or 2.58% at 17,759.30.

During the day, Indices rally strongly. India's GDP is expected to grow by 14.0%-14.5% yoy in Q1FY23 backed by the low base and strong domestic demand. A broad-based pickup was observed across consumption, services industry, and investment. Expect the private final consumption expenditure, a measure of demand, and gross fixed capital formation, a measure of investment, to grow by 16% and 14%, respectively. However, net exports will be a drag due to the high average crude price during Q1.

The dollar is being beaten back from a two-decade high versus major peers by a reinvigorated euro. The tables turned for the two currencies as traders began ramping up bets for a super-sized 75 basis-point rate hike by the European Central Bank while paring the odds for one by the U.S. Federal Reserve. Gold prices inched up in early Asian hours, as the dollar eased off a 20-year high, offsetting pressure from expectations of the U.S. Federal Reserve keeping interest rates higher for longer to combat inflation. All the sectoral indices are trading higher with auto, bank, metal, oil & gas, power and realty up 2%-3% each.

Nifty 50 top gainers are BajajFinSv, Bajaj Finance, Indusind bank, TechM & ICICI bank while there in no losers present today in Nifty 50.

Source : Equity Bulls

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DailyMarketCommentary BonanzaPortfolio Nifty Sensex