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Below is the Daily Market Commentary 28 January 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Domestic market made a strong head start today and counterbalance some of the bearishness generated by the Federal Reserve's hawkish commentary. Nifty opened on a firm note in line with its Asian Peers. However profit booking emerged at higher levels, wiping out more than 270 points from day’s highs level. It closed flat with minor loss of 8 points at 17,102 levels. Action was seen in Broader market which outperformed with gains of ~1%. Among the sectors, IT & Parma were top gainers up more than 1% each, followed by Media, Metals, Realty, FMCG, Oil&Gas. While Banking Auto and Financial Services were laggards.

Global markets were mixed and regained some of the losses of past few days on back of impressive corporate earnings and positive data from European region. However, investors still remain cautious over the recent hawkish policy by Federal Reserve as well as Russia’s intentions for Ukraine. Oil prices are on the course for its sixth weekly gains, led by concerns of oversupply levels ahead of the upcoming meeting of OPEC + countries.

Equity markets have been witnessing increase volatility over the last few days. While the US Fed outcome is now behind, several other factors including ongoing result season, Union Budget on Feb 1^st and Russia-Ukraine conflicts would keep the market volatility high in coming week as well. Expectations are running high from the government to present a progressive budget which can revive economic growth. However, given the various state election, risk of a populist budget cannot be ruled out completely. Capital Goods, Infra, housing, Real Estate, PSU Banks, etc are some of the sectors that would remain in focus ahead of the budget.

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