Market Roundup : Domestic equities were trading in a narrow range amid weak global cues Says Mr. Siddhartha Khemka, Motilal Oswal
Daily market commentary 11 July 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Domestic equities were trading in a narrow range amid weak global cues and ahead of key macro data to be released this week. Nifty opened gap down but recovered in the second half to close flat at 16,216 levels. Broader markets outperformed and were up 0.9%. IT was the only loser – down 3% on the back of weak results declared by TCS. Apart from IT, all other sectors ended in green. Metals, Oil & Gas, Auto and PSU Bank were top gainers up more than 1%.
Global equities were negative as market feared prolonged shut down of biggest single pipeline carrying Russian gas to Germany to disrupt energy supply. Further, investors remained cautious ahead of key economic data to be released during the week. New wave of COVID-19 outbreak in China added fear of lockdown.
Equity markets have shown resilience in the last couple of days on back of healthy macro data (GST collection and Service PMI data), strong pre-quarterly updates from Banks, Retails and Real Estate companies. Further, FIIs have reduced their selling intensity drastically in July giving some relief to the market. Today we saw action in Metals on back of news report suggesting government could give some rethink on its export duty, while PSU Banks were in focus ahead of the divestment plans of the government. IT sectors would continue to be in limelight as HCL Tech, LTTs, LTI and MindTree, along with HDFC Bank reporting its numbers during the week.
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