Financial Markets @ January 2023

 

We saw fall in S&P BSE Sensex by 4.35% month on month basis. Midcaps & Small Caps indices were also down around 4%. Same trend was observed in international market too, lead  by Nasdaq Composite Index falling by 8.6%, Hang Seng 7.98% & Nikkei 225 (Japan) 6.86%.

Global Growth slowdown, especially in US & Europe, is expected in 2023 with rates remaining on higher side. India is in transition phase and relatively better placed with more domestic demand driven and, political stability with a progressive reform agenda.

 According to the National Statistical Office (NSO) data, India’s preliminary GDP growth is expected to grow at 7% in fiscal 2023 from an 8.7% in the previous year. Still very much in a zone to

This New Year could be safely termed in Indian market context as stepping stone year, from long term perspective. We have seen Price Earning valuation adjusting amicably vis - vis earnings, making market more transparent. There is possibility of further adjustments in market valuations with the advance tax season approaching and liquidity might be a slight concern. No major downside risk seen to earnings growth in the near Term as domestic demand is resilient

 Present Interest rates Scenario:

1 Year Benchmark G-Sec prevailing rates @ 7.68. 5 Year Benchmark G-Sec prevailing rates @ 6.79 (yields given in semi-annualized).10 Year Benchmark G-Sec prevailing rates @ 7.26

Yes there is a inflationary pressure on interest rate & Liquidity which can be observed with above yields trend.

Happy Investing