Markets reacted sharply on the downside to the surprise 40 bps hike in repo rate and 50 bps hike in CRR by the RBI in a mid-policy review. This forced Nifty to test the much-awaited support levels of 16671.
After yesterday’s decline, the correction phase in the market may have ended and we expect a blowout rally in Nifty post 10th May. The India VIX also tested the 22% resistance mark in yesterday’s trade and we expect a sustained rally in the Nifty after India VIX settles below 18%.
The overall view on the market remains positive and we expect markets to see significantly higher levels as LIC listing occurs. Expects the market to open on a positive note on account rally in the global markets after the US Fed raised its benchmark lending rate by 50 bps which is in line with market expectations.
The US Fed raises rates by 50 bps. Balance sheet run-off to begin on June 1st at USD 47.5 bn/month. Fed expects “ongoing increases” in rates and says it is “highly attentive” to inflation risks.
Nifty 50 Index
Stocks to watch
Positive Read Through
- Wipro expanded its partnership with California-based Vmware to help eliminate the complexity and risk inherent in customers’ multi-cloud initiatives.
- SBI will consider raising $2 billion via public offer and/or private placement of senior unsecured notes during FY23 on May 10
- UPL announced the acquisition of OptiCHOS
- Tata Power commissions 120MW solar project
- GMR Gets Confirmation From Government Extending Term Of Hyderabad Airport
- Adani Enterprises – Mumbai International Airport raises $750 million from Apollo
- Voltas into a JV with Highly International (Hong Kong)
- OnMobile Global introduces Crypto payments for players globally.
- Tata Comm announces multi-year collaboration with Dorna Sports
- Havells India reported better than expected Q4 income but Ebitda margin marginally below expectation
Negative Read Through
- Deepak Nitrite- Revenue up 28%, margin at 21.9% vs 31%
- IT stocks in focus- Cognizant Q1 earnings in-line, Q2 guidance is muted
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