Market Commentary

Post Market views - Nov 25, 2022 - Reliance Securities

Posted On : 2022-11-26 09:47:03( TIMEZONE : IST )

Post Market views - Nov 25, 2022 - Reliance Securities

Mr. Mitul Shah - Head of Research at Reliance Securities.

Domestic equities closed slightly higher following positive global cues. The Nifty gained 0.2%, while broader markets out-performed the main indices as Nifty Mid Cap and Nifty Small Cap gained ~1% each. All sectoral indices ended in green except Nifty Bank (-0.2%), Nifty Fin Service (-0.3%) and Nifty FMCG (-0.3%). Nifty Media gained the most at 2.5% followed by Nifty Reality and Nifty Auto which were up by 1.2% and 0.9% respectively. Meanwhile, the government is looking to 5%-10% in Coal India, Hindustan Zinc and RCF via OFS.

U.S. markets were closed for the Thanksgiving holiday. It rallied in the previous session following the release of the Fed minutes. Global stocks edged up in expectations of FED slowing the pace of interest-rate hikes going ahead. A key focus for the market is the Chinese government's response to rising Covid-19 cases, with the country now battling its worst outbreak of the virus. In Malaysia, the benchmark stock index rose 4%, the most since Mar'20, after opposition leader Anwar Ibrahim became prime minister. Malaysia's currency strengthened 1.8% against the dollar.

During 2QFY23, margins of most manufacturing sectors remained under pressure due to elevated input costs and subdued realizations which adversely impacted operating cash flows of private companies. While the recent decline in input costs provided relief, much also depends on consumer demand. Overall, India has performed well owing to its strong macroeconomic fundamentals. We expect a recovery starting 3QFY23 led by softening of commodity prices and monetary easing by central banks which is likely to boost demand.

Source : Equity Bulls


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