Daily Market Commentary - Jan 27, 2023 - Bonanza Portfoio

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

Indian indices opened lower today with the Nifty below 17850. At the time of closing Sensex was down by 874.16 points or 1.45% to close at 59,330.90 and Nifty was down by 287.60 points or 1.61% to close at 17,604.35.

During the day, the department of financial services has told private banks to improve their performance on the government's financial inclusion initiatives or face sharp cuts in government business. The government will pay Rs 4,000 crore by the end of March to beneficiaries of the production-linked incentive scheme as it lines up its expansion. Installments for mobile manufacturing, pharmaceuticals, and food processing have already been paid for and can further extend to more sectors. After growing rapidly for a few years, growth slowed down at direct mutual fund investment platforms in 2022. International pension funds scaled back their India bets in 2022. The value of their holdings has fallen by 13.3% or Rs 57,242 crore from Rs 4.3 trillion at the end of 2021 to Rs 3.7 trillion in December 2022. Overall equity investment by FPIs in India dropped 0.5% to Rs 48.3 trillion.

The United Nations has cut its GDP growth forecast for India for the calendar year 2023 to 5.8%, citing the effect of tighter monetary policy and weak global demand. The US economy grew faster than expected in the Q4, but that likely exaggerates the nation's health as a measure of domestic demand rose at its slowest pace in 2.5 years, reflecting the impact of higher borrowing costs. Gross domestic product increased at a 2.9% annualized rate last quarter. China purchased nearly all of India's iron ore exports in December after New Delhi lifted export duty on the mineral. India's iron ore exports to China jumped over 10 times to $153 million in December from $14.26 million in November. On the sectoral front, PSU Bank, oil & gas, power, and metal indices down 4-6%.

Nifty 50 top gainers are Tata Motors, Bajaj Auto, Dr. Reddy, ITC, and Cipla while Adani Enterprises, Adani Ports, State bank of India, ICICI bank, and IndusInd Bank were among the top losers.

Source : Equity Bulls

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