InvestorQ : What is your market outlook for Thursday the 11th of August and how do you see the markets panning out from here?
Arusha Ray made post

What is your market outlook for Thursday the 11th of August and how do you see the markets panning out from here?

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diksha shah answered.
2 months ago
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On Wednesday, the markets were volatile through the day but managed to close flat after volatile trading. Towards the end of the day even the advance decline ratio also gradually turned to positive in favour of the advances. Metals and mining stocks gained sharply on solid results from Coal India and Hindalco for Q1FY23.

For the month of July 2022, the US consumer inflation rate came in at 8.5%. While this is a full 60 bps lower than the previous month of June 202, the pressure is likely to remain on the RBI to further hike rates to be in sync with the Fed. For now, the Fed is likely to still move towards above 3% rate levels by end of 2022.

FPIs net bought equities to the tune of Rs.1,062 crore while domestic funds and LIC sold stocks worth Rs.768 crore on Wednesday. FPIs have infused $2.2 billion in August till date. On Wednesday, Dow was up 535 points while NASDAQ was up 361 points on lower than expected inflation. Europe was up while SGX Nifty trades 114 bps higher in early trades.

For now, the market sentiments appear to have turned for the positive with a toned down US inflation. The stock markets have interpreted the inflation move positively. RBI hawkishness, however, still remains but further rate hikes could be more mellowed and not as large as 50 bps. The good news is that the monetary policy measures are working.

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