<p>The equity markets managed to close on a positive note despite hawkish Fed commentary, a fresh batch of sanctions on Russia and a strict lockdown in China amid a surge in new Covid-19 cases. Nifty/Sensex were up 114/170 points (+0.6%/+0.3%) to close at 17,784/59,447. Midcap100/Small100 strongly outperformed with gains of +3.6%/+2.7%.</p>.<p>Except media and IT sectors, all the others ended in green with FMCG, metals, PSU banks and energy gaining ~4% each. Foreign institutional investors (FIIs) again turn net sellers this week, having sold equities worth more than Rs 5,500 crore (till Thursday) while domestic institutional investors (DIIs) were buyers to the tune of Rs 4,000 crore (till Thursday).</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/rbi-survey-projects-double-digit-inflation-rate-not-6-1099125.html">RBI survey projects double-digit inflation rate, not 6%</a></strong></p>.<p>Global markets, too, gave a positive close despite Fed minutes reinforcing its hawkish views of aggressive monetary policy tightening to curb inflation. The Federal Reserve Governor commented to continue with tightening of monetary policy methodically through a series of interest rate increases and reducing the balance sheet at a rapid pace.</p>.<p>Domestic markets, despite weak global cues, managed to close in the green, welcoming RBI’s move to maintain an accommodative stance in its policy meet. Momentum was seen in several broader market themes like defence, power, realty and tyre sector stocks.</p>.<p>Most of the power utilities stocks have been in action recently as rising temperature across the country since mid-March and recovery in the economy, led to a sudden increase in power demand, thus, widening the demand-supply gap. Also, consumer durables have been in limelight on account of an increase in demand for air-conditioners, while hotel stocks saw demand led by uplifting of travel restrictions and the onset of vacation.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/opinion/in-perspective/rbi-finally-sees-reality-1098907.html">RBI finally sees reality </a></strong></p>.<p>Nifty has remained sideways after briefly crossing the 18,000 mark earlier during the week. Overall, equity markets have shown strong resilience even though they face headwinds from the uncertain global environment and persistent inflation.</p>.<p>Also, India's VIX has further cooled down by 7% to below 18 indicating stability in the market. The earning season of the fourth quarter of FY 2021-22 will kick off next week and would be the key factor for market direction going forward.</p>.<p><span class="italic"><em>(The writer is Head-Retail Research, MOFSL)</em></span></p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p>The equity markets managed to close on a positive note despite hawkish Fed commentary, a fresh batch of sanctions on Russia and a strict lockdown in China amid a surge in new Covid-19 cases. Nifty/Sensex were up 114/170 points (+0.6%/+0.3%) to close at 17,784/59,447. Midcap100/Small100 strongly outperformed with gains of +3.6%/+2.7%.</p>.<p>Except media and IT sectors, all the others ended in green with FMCG, metals, PSU banks and energy gaining ~4% each. Foreign institutional investors (FIIs) again turn net sellers this week, having sold equities worth more than Rs 5,500 crore (till Thursday) while domestic institutional investors (DIIs) were buyers to the tune of Rs 4,000 crore (till Thursday).</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/rbi-survey-projects-double-digit-inflation-rate-not-6-1099125.html">RBI survey projects double-digit inflation rate, not 6%</a></strong></p>.<p>Global markets, too, gave a positive close despite Fed minutes reinforcing its hawkish views of aggressive monetary policy tightening to curb inflation. The Federal Reserve Governor commented to continue with tightening of monetary policy methodically through a series of interest rate increases and reducing the balance sheet at a rapid pace.</p>.<p>Domestic markets, despite weak global cues, managed to close in the green, welcoming RBI’s move to maintain an accommodative stance in its policy meet. Momentum was seen in several broader market themes like defence, power, realty and tyre sector stocks.</p>.<p>Most of the power utilities stocks have been in action recently as rising temperature across the country since mid-March and recovery in the economy, led to a sudden increase in power demand, thus, widening the demand-supply gap. Also, consumer durables have been in limelight on account of an increase in demand for air-conditioners, while hotel stocks saw demand led by uplifting of travel restrictions and the onset of vacation.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/opinion/in-perspective/rbi-finally-sees-reality-1098907.html">RBI finally sees reality </a></strong></p>.<p>Nifty has remained sideways after briefly crossing the 18,000 mark earlier during the week. Overall, equity markets have shown strong resilience even though they face headwinds from the uncertain global environment and persistent inflation.</p>.<p>Also, India's VIX has further cooled down by 7% to below 18 indicating stability in the market. The earning season of the fourth quarter of FY 2021-22 will kick off next week and would be the key factor for market direction going forward.</p>.<p><span class="italic"><em>(The writer is Head-Retail Research, MOFSL)</em></span></p>.<p><strong>Watch the latest DH Videos here:</strong></p>