On Friday, both the Sensex and Nifty closed positively following the outcome of the RBI policy meeting, during which the central bank decided to keep interest rates unchanged. However, there was a sharp increase in Gsec yields, reaching 7.32%, after the RBI announced its intention to utilize the OMO tool to manage liquidity in the market.
On the macroeconomic front, S&P Global India Services PMI for September 2023 surged to 61 levels, surpassing market expectations, up from 60.1 levels in August 2023, which had been forecasted at 59.5 levels.
Global markets experienced selling pressure due to US 10-year treasury yields rising above the 4.8% mark following the release of the September non-farm payroll data. Additionally, heightened tensions in the Middle East, with the ongoing conflict involving Israel and militants, along with reports suggesting Iranian involvement in plotting attacks, are expected to further weaken global market sentiment. This situation could potentially impact oil supply, leading to a further increase in oil prices.
In the upcoming week, investors will closely monitor domestic inflation figures, quarterly earnings reports, US inflation data, and the release of FOMC meeting minutes.
Equity Market Summary:
- Wallstreet indices closed on positive despite tight labor market data reported. US non-farm payroll increased the most in 8 months and wages grew at a slower pace.
- European markets gained on Friday, tracking positive global cues. Leading the Friday gains were tech, retailers, and bank stocks, all of which rose by more than 1%.
- US nonfarm payrolls increased by 336,000 in September 2023, well above an upwardly revised 227,000 in August, and beating market forecasts of 170,000. It is the strongest job gain in 8 months. Unemployment rate in the US was at 3.8% in September 2023.
- US Services PMI eased to 53.6 levels in September 2023 from the 6-month high of 54.5 levels in the previous month.
