Mr. Mitul Shah - Head of Research at Reliance Securities.
Indian equities ended FY23 on a positive note, tracking positive cues in global markets. Nifty closed 1.6% higher on Friday while broader markets also ended in green as Nifty Midcap and Nifty Smallcap were up 0.9% and 1.6% respectively. All of the sectoral indices ended in green. Nifty IT gained the most at 2.5%, followed by Nifty Pvt Bank, Nifty Bank and Nifty Oil & Gas which were up 1.9%, 1.8% and 1.7% respectively.
For FY23, Nifty was down 0.6%. Nifty Midcap ended 1.2% higher while Nifty Smallcap tumbling 13.8%. Nifty PSU Bank was the biggest gainer for the year at 36.3%, followed by Nifty FMCG, up 26.5%. Meanwhile, Nifty Media and Nifty IT were the major laggards which were down 28.6% and ~21% respectively.
U.S. stocks rose across the board, aided by easing global banking concerns. The S&P 500 added 0.6%, the Dow Jones gained 0.4% and the tech-heavy Nasdaq rose 0.7%. The yield on the 10-year Treasury inched up to 3.57%.
Automobile stocks will remain in limelight ahead of the March volume numbers. The macroeconomic data for the Indian and global economies as well as the 4QFY23 business updates will also start coming out next week. Brent crude prices continue to be strong at $79/barrel. Rising yields in the US, higher crude prices along with the prospect of a below normal monsoon could act as headwinds for the Indian markets.