Market Update for 10 Oct 22
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Wall Street slid on Wednesday post mid term election results that showed a mixed verdict and investors' focus turned towards inflation concerns. Dow fell 1.95%, S&P dropped 2.08% and Nasdaq closed 2.48% lower ending three day's winning streak.
USD index moved higher near 110.43, 10 year dropped below 4.10% and Cboe Vix closed above 26.
Crude futures continued to slide on China worries and increase in US stockpiles. WTI fell below 86, Brent slipped below 93.
Indian stocks cooled off after hitting 9 month highs awaiting US mid term elections outcome and inflation data. Both Nifty and Sensex closed 0.25% down as Metals, Autos and FMCG names lost some ground but on flip side PSU banks continued its dream run higher. Mid and Small cap names showed some profit taking underperforming main indices.
Stocks may continue to consolidate (as indicated yesterday, indices may need some consolidation before they take on life highs). Sector rotation may continue to help participants genrate some alpha even if markets consolidate for a while. Investors may realign portfolios for upcoming bull charge using current phase of consolidation.
_(prices as on 4.09 am IST)_
By: via Allies Fin Serve Stock Market
