Daily Market Commentary - Dec 19, 2022 - Bonanza Portfolio

Mr. Jitendra Upadhyay, Sr. Equity Research Analyst, BONANZA PORTFOLIO LTD

Indian indices opened on a flat note amid mixed global cues. At the time of closing, Sensex was up by 468.38 points or 0.76% to close at 61,806.19 and Nifty was up by 151.45 points or 0.83% to close at 18,420.45.

During the day, India's foreign exchange forex reserves rose by $2.91 billion to $564.07 billion for the 5th consecutive week ending on December 9. With exports continuing to remain under stress for the second consecutive month in November, and imports also falling, the current account deficit is likely to moderate in the second half and close the fiscal with a 3.3% of GDP or $108-112 billion. Falling exports and commodity prices will also help the country print a moderate CAD at $24-26 billion in Q3FY23 from a likely high of $31-34 billion in Q2FY23. India's economy appeared to slow rather than accelerate last month, as high-frequency indicators tracked by Bloomberg signaled worsening business and consumption activity.

South Korea's economy is slowing at a more rapid pace than previously expected and would bottom in the first half of next year. Canada Pension Plan Investment Board (CPP Investments) announced that it has agreed to sell its 49% stake in L&T Infrastructure Development Projects Limited (L&T IDPL). RITES has signed a memorandum of understanding (MoU) with Kirloskar Oil Engines (KOEL) to jointly explore business opportunities for supplies/services in the export of railway rolling stock, infrastructure, and urban transport for domestic and overseas markets. On the sectoral front, Except IT, all other sectoral indices ended in the green with Auto, Metal and FMCG indices up 1% each.

Nifty 50 top gainers are Adani Ports, Adani Enterprises, Mahindra & Mahindra, Eichers Motors, and Power grid while TCS, ONGC, Tata Motors, Infy, and Sun Pharma were among the top losers.

Source : Equity Bulls

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