Topic 4: CORPORATE RESULTS, UNCHANGED RATE AND GLOBAL

With April ‘23 having only 17 days of trading, markets have gained significantly during the period. The strong corporate results with positive economic numbers helped the markets to sustain the growth. After the global inflation fears accompanied with the emerging banking crisis, Indian markets attracted FIIs, because some good numbers and better regulatory revolution. The sectors which helped the index to gain were realty, public sector, capital goods and auto whereas the IT sector corporate results were poor. The small and mid-caps were major gainers in the last week of the month. The market anticipated the good earnings season. As the month ends, hoping this positive streak continue for the month of May, on the back of favourable domestic economic conditions and good corporate earnings outcomes but volatility remains prevail due to unfavourable global macroeconomic conditions like rising inflations across the world, banking crisis and Ukraine-Russian war woes hitting crude prices. Also, the El Nino effect on upcoming monsoon would be the biggest factor for the precarious for India. Debt markets were also volatile as economist predicted the rate hike by MPC but remained unchanged rate turns yields into negative territory. In the mid-month the yields moved towards southwards due to profit booking and uncertainty over US inflation and economic data wherein US Fed expects one more rate hike. The rupee also remains volatile due to equity markets gain and unstable US Treasury Yields. The gold stays stable amid global interest rate volatility. With the cut in the production by OPEC and other allies the crude oil prices would affect the world recession severely. The volatility remains elevated in near future due to prevailing domestic and global conditions with uncertain upcoming monsoon, recession in the world economies, rapid China’s economic recovery and also the erratic Ukraine- Russia war conditions.