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US markets fall big after fed meeting minutes come out! What's in store for India?

Good Morning, Everyone, Nifty has been outperforming for the past few days majorly supported by the Banks that have been overperforming. However, Yesterday, the Federal Reserve meeting minutes released yesterday gave hints of reducing liquidity in the market, which spooked the investors and led to a major sell-off. A similar weakness was seen in Asian markets in today's morning's trade too, which could impact the Nifty too.

For now, 18000 will be the strong resistance for Nifty and on the lower side, 17600-17700 will act as good support for Nifty.

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On the daily timeframe, Nifty has formed a bullish candle, but with weak global cues, it looks difficult to sustain at this level.

The Smallcap index was down 0.11% and the top gainers were IDBI up 7.7%, CHAMBLFERT up 5.68%, CAMS up 3.14%. The top losers were ALOKINDS down 2.96, FSL down 2.77%, BALAMINES down 2.53%.

The Midcap index was up 0.14%, led by AUBANK up 7.13%, ASHOKLEY up 2.75%, BANKINDIA up 2.17%. The top losers were COFORGE down 2.95%, MPHASIS down 2.32%, CUMMINSIND down 2.16%.

The Nifty50 index was up 0.67%, led by BAJAJFINSV up 4.95%, BAJFINANCE up 4.39%, KOTAKBANK up 3.46. The top losers were TECHM down 2.84% INFY down 2.69% and HCLTECH down 1.66%.

It was banks and financial services stocks powering the entire bull run till yesterday.

Global Markets:

Stocks closed lower on Wall Street Wednesday after minutes from the Federal Reserve’s last meeting raised expectations that the central bank will raise rates faster to fight inflation. S&P fell nearly 2 percent. The Dow Jones fell over 1 percent, and the tech-heavy Nasdaq declined over 3 percent.

Asian shares were trading lower this morning following losses on Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan is down over 0.4 percent. Shares in Japan are down over 1 percent. Chinese blue chips are down 0.2 percent. Hong Kong’s HSI bucked the trend and inched 0.3 percent higher. South Korea’s Kospi declined 0.45 percent. Elsewhere in Australia, stocks declined over 1 percent.

Japan's services sector activity expanded at a slower pace in December as growth in new and outstanding business softened and expectations for the 12 months ahead eased to a four-month low.

Indian Market:

With weak global cues, the Indian market is also set for a big gap-down opening today. And today is the first weekly expiry of 2022 we can see high volatility in Nifty.

Passenger vehicle retail sales in India witnessed an 11 percent year-on-year decline in December as semiconductor shortage continued to impact the segment, FADA said

India's services sector activity moderated in December as business activity and sales rose at a softer pace, while price pressures and the possibility of new waves of COVID-19 affected business sentiment, the India Services Business Activity Index showed.

Samiran Chakraborty of Citi said with every passing wave, the correlation between mobility restrictions and GDP is reducing. The virus is not having as much of an impact on the economy as it did before. Hence, he is not in a hurry to slash the GDP forecast. But, Omicron could be a factor that will drive both fiscal and monetary policy.

The third wave of the pandemic, which has seen a massive spike in infections after the more infectious Omicron variant of the coronavirus appeared, is likely to shave 40 bps off the fourth-quarter GDP growth that may print in at 4.5-5 percent, warns ICRA Ratings.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 336.83 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,271.95 crore in the Indian equity market on January 5

Stock Specific News:

Hero Motocorp | Naveen Munjal-led Hero Electric Vehicles moved the Delhi High Court seeking an injunction against Hero MotoCorp using the word 'Hero' for its upcoming electric vehicle in March 2021.

NHPC | Promoters Agreement has been signed between NHPC and Green Energy Development Corporation of Odisha for the formation of a joint venture company for the development of 500 MW floating solar power projects in various water reservoirs in Odisha.

HDFC Bank | The private sector lender has sold Rs 2,188 crore of distressed retail loans to asset reconstruction companies in the last three quarters with the aim of cleaning its book, reports said.

Vodafone Idea | The Delhi High Court has stayed an appellate tribunal's order that prevented TRAI from taking any coercive action against Vodafone Idea for allowing only subscribers with certain tariff plans to port out, as per reports.

Mahanagar Gas | Life Insurance Corporation of India acquired a 2 percent stake in the company through open market transactions. With this, LIC's shareholding increased to 7.01 percent from 5 percent earlier.

Gautam Gems | On January 13, the company will consider the rights issue of equity shares, along with unaudited financial results for the quarter that ended on December 31, 2021.

Future Group companies | The Delhi High Court has stayed the Amazon-Future arbitration which is going on before a three-member arbitral tribunal over the latter's Rs 24,500-crore deal with Reliance Industries Ltd. The high court also stayed a single judge's January 4 order that had dismissed the Future Group's two pleas seeking a direction to the arbitration tribunal, adjudicating Amazon's objections against the former's deal with RIL, to take a decision on its application for terminating the arbitration proceedings before moving further.

Palm Jewels | The company on January 13 will consider the rights issue of equity shares, along with unaudited financial results for the quarter ended on December 31, 2021.

Liquor companies | Liquor companies are appealing to state governments to allow them to raise prices amid surging costs of inputs ranging from tamper-proof caps to extra-neutral alcohol, the primary raw material, a news report said.

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