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Daily market commentary 21 December 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities came under pressure after worsening of covid situation in China and sudden spurt of cases being witnessed in USA, Korea, Brazil, and Japan. Nifty opened positive but soon witness selling after Centre issues advisory to states to step up measures to tackle the new Covid wave. The index closed near days’ low with loss of 186 points (-1%) at 18199 levels. India VIX jumped sharply by 13% to above 15 zones. As a result, covid sensitive sectors like pharma and diagnostic were in limelight and are expected to remain in momentum. On the other hand, sectors like Travel and tourism, hotels, airlines, entertainment and retail sectors may witness some pressure. Given the concern over the resurgence of pandemic once again along with recessionary fear, we expect market volatility to continue. In the meantime, investors would monitor US existing home sales data to be released today followed by GDP data of US and UK tomorrow (Thursday).

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