IANS | 12 Jul, 2023
An uptick in domestic food inflation on the back of higher mandi
prices trending above MSP and muted Kharif sowing has forced the
investors to be cautious, according to Vinod Nair, Head of Research at
Geojit Financial Services.
Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend, he said.
The
range-bound movement in the Indian indices was influenced by the
likelihood of subdued IT earnings while optimism about moderation in US
inflation supported the broad index.
Domestic equities witnessed
some slide on Wednesday from their highs after remaining in the
consolidative mode over the last six trading sessions. Rebalancing in
the benchmark indices due to the merger of HDFC twins led to many
changes at the index level and the adjustments took place in the last 30
minutes on Wednesday, said Siddhartha Khemka, Head of Retail Research,
Motilal Oswal Financial Services.
Nifty opened higher but last
30-minute selling in the heavyweight led the index to close near the
day’s low with a loss of 55 points at 19,384. Sectorally, it was a mixed
bag with buying seen in PSU banks, Khemka said.
“We expect the
market to remain in consolidative mode with support at lower levels.
Investors will react to the domestic and US CPI data that will be
released on Wednesday. TCS and HCL results will give cues for other IT
majors. Auto, PSU banks, pharma, building material and defence sector
stocks could continue to see positive momentum," he added.
