Mr. Mitul Shah - Head of Research at Reliance Securities.
Indian equities ended flat amid mixed global cues, dragged down by technology stocks. Broader markets ended slightly higher as Nifty Mid Cap and Nifty Small Cap were up 0.1% and 0.5% respectively. Majority of sectoral indices ended in green. Nifty Auto (+1.1%), Nifty Realty (+1.2%) and Nifty Healthcare (+0.6%) were the major gainers. Nifty IT (-1.9%) and Nifty Consumer Durables (-0.3%) were the primary laggards.
US stocks edged lower as investors weighed a much-anticipated product launch from tech giant Apple and continued hunting for clues about the future path of interest rate hikes. Wall Street's S&P 500 closed down 0.2%. The Nasdaq Composite edged 0.1% lower while the Dow ended 0.6% lower. The yield on the 10-year US Treasury note was flat at 3.7%. The Federal Reserve will make its interest rate announcement on June 14. Meanwhile, tech giant Apple's shares slid 0.8% after the group unveiled a new "mixed-reality" headset, following gains of as much as 2.2% in the run-up to the product launch.
The 4QFY23 earnings season has ended with the sample of NSE 500 companies excluding BFSI reporting a revenue growth of 16% YoY/8% QoQ while EBITDA grew 18% YoY/12% QoQ as companies passed on higher costs to consumers. EBITDA margins improved 100bps sequentially. Adj PAT rose 20% YoY/43% QoQ. Sectors such as automobiles, cement, FMCG, consumer discretionary reported healthy margin improvement sequentially while metals and retail saw contraction. The RBI monetary policy committee will meet this week with the interest rate decision due on Thursday, 8th June. Consensus expectations are of a continued pause. Meanwhile, the onset of monsoon over India has gotten delayed.