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Daily market commentary 17 February 2023 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities snapped their three-day gains to end lower on the back of weak global cues. Nifty opened lower and remained under pressure throughout the session to end with loss of 92 points (-0.5%) at 17944 levels. Even broader market ended lower on similar lines with majority of the sectors down. Higher US inflation data and lower jobless claim data led to hawkish commentaries by some of the US Fed officials which dented sentiments and led to the renewed fear of aggressive rate hikes in the subsequent meets to combat sticky inflation. On the domestic front, even the corporate earnings growth for 3QFY23 moderated led by weak demand environment and inflation led margin pressure. Slowdown in Consumption if persist, can pose a big concern. Currently markets are trading range bound and valuations are fair with Nifty trading at ~18x FY24E EPS. Thus there is room for modest upside but only if corporate earnings do not see material downgrades ahead.

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