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Daily market commentary 14 December 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities cheered the lower US inflation data ahead of the Fed outcome. Nifty opened higher and remained green throughout the day to close with marginal gains of 52 points at 18660 levels. Bank Nifty crossed 44k level for the first time, continuing its new high momentum, aided by strong credit growth and improving net interest margins. Except FMCG, all sectors ended in green. Real Estate and Housing Finance stocks recorded smart gains after inflation data showed signs of easing and fell under RBI mandate range. Now all eyes would be on US Fed’s rate decision and its commentary on future direction. Investors are hopeful that they might hike the interest rate less aggressively by 50bps. Interest sensitive sectors would remain in focus. We expect momentum to continue in banking and financial stocks, while metals could see some interest on the back of higher LME prices and expectation of improvement of demand in China. Tech stocks are witnessing fresh buying after the recent fall of nearly 10% from the recent high and uptick in US tech stocks.  

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