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Daily market commentary 29th April 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Indian equities pared all its intraday gains amid sharp selloff seen in the last hour of trade. Nifty opened on a firm note and witnessed momentum boosted by positive global cues. However profit booking in the last hour of the session led the market to close in red with loss of 143 points (-0.8%) at 17,103 levels. Broader market underperformed with Nifty Midcap 100 down 0.8% and Nifty Smallcap down 1.2%. All sectorial indices ended in red with Oil & Gas and Media being top laggards down more than 2%.

Global markets were trading in green supported by positive economic data from Germany and the Eurozone. However, restriction in Beijing due to widespread of corona cases and Russia’s confirmation to strike Kyiv during UN visit capped the upside. Oil extended gains for a fourth day as supply fears outweigh China lockdowns.

Markets are witnessing volatile swing weighed by concerns over multi-decade high inflation rates, potential aggressive interest rate hike by US Fed and slowing global growth along with prolonged Russia-Ukraine war. Also relentless selling by FIIs is hampering the investor’s sentiments. Despite sharp selling pressure in the last hour, Nifty held on to its key psychological level of 17,000 mark. Going ahead, volatility is likely to continue as the focus will shift to central bank policy meetings at both the US Federal Reserve and the Bank of England. Apart from, this slew of economic data release, monthly auto sales data and ongoing earnings season will keep investors busy. The mother of all IPO - LIC will also hit Dalal Street on 4th May 2022 which could pull out liquidity from the market and exert some selling pressure.

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