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Daily market commentary 05 December 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic indices traded cautiously ahead key events lined up this week. Nifty opened positive but soon drifted in red and remained lackluster throughout the session to finally close flat at 18701. Broader market continued with its outperformance with Nifty midcap 100 finally crossing its 52W high and is just 2-3% away from all time high levels. Going ahead the momentum in the mid and small cap companies is likely to continue. Metals, Banking and Realty sectors would continue seeing traction. Banking stocks will be in lime light ahead of RBI policy outcome. Reopening of China and surge in metal prices would keep momentum in metal stocks while strong demand in real estate would keep realty and building material stocks in flavour. Even NBFCs might see some action as disbursements continue to remain healthy. Gold finance companies especially will continue to be in limelight as surge in gold price to 8-month high makes them a lucrative bet. We expect market to consolidate for next few days given the RBI policy on Wednesday and Gujarat election outcome on Thursday. Tomorrow we might see some reaction based on Gujarat exit poll data today.

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