Equities have performed well during the week as the investors are expecting Fed to slower the pace of rate hikes and the incoming macro-data has been better even though recession risk factors were alarming. On the earning front, TCS underperformed, Infosys & Wipro outperformed market estimates and the prior one has increased the revenue outlook growth for Fy23. HDFC Bank which is an index heavy stock reported 24% growth in NII and showed strong retail loan book growth which led to higher profitability during the quarter.
Equity Market Summary:
o Wallstreet indices closed on positive note Friday and booked strong weekly gains amid lower inflation data & slowing wage growth. However, investors are looking closely at quarterly earnings for future trends.
o European indices witnessed strong rally during the first 2 weeks of 2023. DAX booked 8% gains in 2 weeks which is higher than average annual returns for the last decade.
o US reported 6.5% YoY inflation growth, which is slowing down but also much higher than Fed’s targeted level of 2%
