Mr. Mitul Shah - Head of Research at Reliance Securities.
Indian equities ended slightly higher amid mixed cues in global markets. Nifty was up 0.2%. The Nifty Mid Cap was down 0.1% and Nifty Small Cap up 0.5%. Sectoral indices ended mixed. Gains were led by the financial sector with the Nifty PSU Bank up 1.3% while the Nifty Oil & Gas (+0.7%) and Nifty Metal (+0.6%) were among the other gainers. Nifty Consumer Durables (-1.2%) and Nifty Media (-0.7%) were the major laggards. Meanwhile, the finance ministry in its monthly economic review suggests that India's 6.5% real GDP growth target for FY24 may take a hit due to El Nino, OPEC+'s surprise output cut and banking risks in some advanced economies.
US markets ended mixed on Monday as investors awaited the release of a slew of corporate earnings reports from big technology companies and fresh economic data. The tech-heavy Nasdaq slid 0.3% while the S&P 500 ended flat. The Dow Jones ended 0.2% higher. Wall Street is looking ahead to mega-cap tech earnings results from Alphabet, Microsoft, Amazon and Meta this week. The benchmark 10-year yield ended lower at 3.47%.
The markets is in the thick of the earnings season both in India and globally. Sample of 70 companies to have reported their 4QFY23 results so far shows revenue growth of 9.7% YoY and PAT growth of 12.7% YoY. Investors will closely analyse the quarterly numbers and the management commentary on the demand scenario in the economy. Commodity prices including Brent crude prices will depend on the extent of the recessionary conditions in the US and recovery in China. The Fed Reserve is likely to hike interest rates by 25bps in its next meeting in early May. Bond yields in India have cooled down following the pause in rate hikes from the RBI.