Post-market views - July 26, 2023 - Reliance Securities

Mr. Vikas Jain, Senior Research Analyst at Reliance Securities.

Indian equities ended higher while investors awaited on several earnings results. Nifty was up 0.5% while Nifty Mid Cap climbed 0.4% and Nifty Small Cap gained 0.2%. All of the Sectoral indices ended in green except Nifty Consumer Durables (-0.3%) and Nifty Auto which was largely flat. Nifty PSU Bank (+1.5%), Nifty Reality (+1.2%) and Nifty Media (+0.9%) were the major gainers.

U.S stocks ended higher ahead of the Federal Reserve's policy meeting on Wednesday. The S&P 500 reached its highest level in more than a year and rose 0.3%. The tech-heavy Nasdaq Composite rose 0.6% after tech giants Microsoft and Alphabet reported earnings, with both beating expectations. The Dow was up slightly at 0.1%. The 10-year treasury was at 3.89%. The Fed is expected to raise interest rates by 0.25 percentage points to bring the policy rate to a range of between 5.25% and 5.5%.

The earnings season will pick up pace in the coming days. While companies in the IT sector reported decent order wins, revenue has remained under pressure due to cuts in spends by the clients. Consumption expenditure remains muted due to elevated price levels. Globally, the U.S economy seems to be resilient but investors anticipate another 25bps rate hike. Investors will follow the management commentary and keep an eye on macroeconomic data for further cues.