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Below is Quote On Weekly Market Outlook 04 Novenber 2022 Says Shibani Sircar Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company

“Indian equity markets continue to outperform global markets during the week ended 4th November 2022. Globally, the US Federal Reserve raised interest rates by another 75 bps during its meeting this week, in line with the market expectations as the US CPI inflation remains high even while unemployment remains low.

High frequency economic indicators in India continue to show upward trajectory aided by festive season activities. Consumption during festive period remain strong as seen from registrations of automobiles, property registration and credit card spends. However economic recovery continues to be led by urban consumption while rural trends lag. Monsoons have been uneven and government estimates summer food grain production to decline by 4% YoY. MNREGA work demand still higher than pre-COVID.

We are in the midst of the Q2FY23 corporate earnings. Results so far have been largely in line with street estimates. However, dispersion has been wide at a sector and stock level with domestic facing sectors faring better than those with global linkages. BFSI led the pack with pick-up in credit growth, higher margins and improving asset quality. Revenue growth remained robust but margins were impacted by the inflationary pressures. Commentary from companies indicated some easing of inflationary pressure which could lead to improvement in margins in the future.

Going forward, market would monitor RBI actions in upcoming monetary policy in December and outlook on interest rate trajectory. Geo-political issues and action of global central banks would likely be other factors that market participants would watch out for.”

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