Weekly market update, March 31, 2023

The India benchmark indices snapped three weeks of declines to rise the most in 23 weeks or five months. Nifty logged weekly gains of 2.45%, whereas Sensex advanced 2.55% in trade this week. Improving sentiments in the developed markets, especially the US, was reflected in the domestic equity markets. Rising expectations of a contained banking crisis without any contagion, coupled with higher jobless claims, led to markets betting on the Fed going slow on the rate hike front. All the sectors advanced in trade this week with Nifty PSU Bank, Nifty Bank and Nifty IT being the top gainers.

Analysts expect that market’s future movements may depend more on data and validation of expectations. Investors will keep an eye on March auto sales numbers that will start coming from 1 April and the Reserve Bank of India’s monetary policy committee (MPC) decision on interest rates on 6 April. On the macroeconomic front, S&P Global Manufacturing PMI and Services PMI data are scheduled on 3 and 5 April. Apart from domestic factors, global cues and trends of foreign flows will also be in focus. In the US, the release of personal consumption expenditures data is awaited, as it is a crucial indicator for forecasting the Federal Reserve’s future actions. The earnings season beginning 13 April will also influence market sentiments and stock movements.

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