Mr. Mitul Shah - Head of Research at Reliance Securities.
Indian equities ended lower, dragged down by banking and financial stocks, amid mixed cues in the global markets. Nifty ended 1.3% lower while Nifty Mid Cap and Nifty Small Cap fell 1.5% and 1.2% respectively. All sectoral indices ended in red. Nifty PSU Bank was the major laggard which plunged 3.6% followed by Nifty Bank and Nifty Pvt Bank which were down 2.5% and 2.3% respectively.
The U.S. equities closed mixed following series of major earnings report. The Dow Jones was up 0.3%, the S&P 500 fell 0.1%, while Nasdaq was down 0.3%. The 10-year Treasury note declined to 3.467% from 3.522% the day before. The US, S&P Global survey of business activity, was 46.6 in January, from 45 in December. In Europe, the index rose to 50.2 from 49.3. Moreover, the Commerce Department will release 4Q GDP data on Thursday.
The earnings season is in full swing and markets are closely following the management commentary. So far, the 3QFY23 results suggest increased revenue growth with some pressure on the margin front. The US December macroeconomic data were dismal, pointing to a slowdown for the world's largest economy. Meanwhile, the RBI has mentioned that while some economies adapted and coped with the difficult situation in 2022, the biggest risk in 2023 will be the US monetary policy and the trajectory of the US dollar. In the run-up to the Union Budget 2023, sector and stock-specific movements are expected to hit the markets in the coming weeks.