Post Market Views - Jan 13, 2023 - Reliance Securities

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

Indian equities closed higher following positive global cues as softer inflation print boosted investors' confidence. Nifty rose 0.6% while broader markets under-performed the main indices as Nifty Mid Cap was largely flat while Nifty Small Cap was down 0.1%. Majority of sectoral indices ended in green. Nifty Consumer Durables (-1%) was the major laggard. Nifty PSU Bank was the major gainer which climbed 1.4% followed by Nifty Metal and Nifty Pvt Bank which were up 1.3% and 0.7% respectively. Meanwhile, Prime Minister Narendra Modi holds a meeting with economists at NITI Aayog.

The U.S. equities rose in a volatile session, after a soft inflation print. The S&P 500 added 0.3%, the Dow Jones gained 0.6%, while Nasdaq rose 0.6%. The consumer-price inflation slowed to 6.5% in December, down from 7.1% in November. The yield on the 10-year U.S. Treasury note slipped to 3.446% from 3.554%.

The market is awaiting on the 3QFY23 earnings result for further cues. The inflation in the US, Europe and other economies may have peaked out. Meanwhile, central banks across the globe are pushing ahead with unwinding of their pre-COVID ultra-loose monetary policies, though at a slower pace. While the Indian markets have remained resilient as compared to the global economy, the RBI is expected to continue raising rates in the near term. India is expected to maintain healthy pace of GDP growth of ~7% over the next few years and would remain among the fastest growing economies globally this decade.

Source : Equity Bulls

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