16/06/2023
News and Impact
· Expects market to open on a positive note on account of favorable global markets. US market closed to 14-month high, strong FIIs buying interest and impressive domestic economy data may have positive impact in the market. A six-day advance for the US S&P 500 sent the gauge above 4,400 amid speculation the Federal Reserve will have to end its tightening cycle sooner rather. Dow Jones and Nasdaq composite climbed up over 1% after the US Retail sales data announced better than expectation on Month of Month basis but poor jobless data indicating to pause in interest rate hike. As a result, US bond yield declined and Dollar Index fell to 2-month low to below 103 level as investors digested US Fed rate hike and hawkish commentary including the ECB lifting interest rates by a quarter of a percentage point , as was expected. Asian markets witnessed mixed bag while Japan Index declined ahead of Bank of Japan interest rate decision to be announce today. However, China index gained on hope of China government to announce stimulus. SGX Nifty is up quarter percent while yesterday declined nearly half percent on account of profit booking. US Future marginally decline due to quarterly expiry and rebalancing today while market will be shut on holiday. Expects positive for metal stocks on account of increased base metal price on LME and China stimulus to improve global demand. Pharma stocks may rally continue due to US FDA approval and clean chit by USFDA approval Indian pharma companies. IKIO listing and FTSE rebalancing will be in focus today.
· US Market – US Market witnessed smart rally yesterday. Dow Jones surged over 1% to close 6-month high while the S&P 500 and Nasdaq advance 1% to close at their highest in 14 months, as investors cheered economic data that fueled bets that the Federal Reserve is nearing the end of its rate hike campaign. US Retail sales data announced better than expectation on Month of Month basis but poor jobless data