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Daily market commentary 08 December 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities cheered the Gujarat election outcome and closed near days’ high. Nifty snapped its four day losing streak and closed with gains of 49 points (+0.3%) at 18609. Early trends are pointing towards a sweeping victory for the ruling BJP in Gujarat that has been in power since 1995. Broader market too participated with gains of 0.3-0.6%. Except for IT, Pharma and Realty, all other sectors gained with PSU Banks showing huge momentum. Infact Bank Nifty touched new high today on the back of sharp rally in PSU stocks.

Despite the global worry about Fed aggressive rate hike next week and recessionary fears, domestic market hailed the landslide victory for BJP in Gujarat. Sentiments which had got dented due to hawkish view of RBI on inflation, got a boost from the election outcome. Sentiments further got supported with fall in oil price to nearly 1-year low to below $80/bbl, strong economic data and favourable government policies.

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