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Daily market commentary 13 June 2023 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic market cheered lower inflation and upbeat IIP data. Even global cues were supportive with Fed expected to take a pause this week and China unveiling stimulus measures. Nifty opened higher and strengthened during the day to close near days’ high at 18720 levels with gains of 119 points (0.6%). Even Nifty Midcap100 and Nifty Smallcap100 closed higher by 1.2%/0.7%. Except Auto, all other sectors ended in green. Real estate was the biggest gainer – up 3% followed by FMCG and Pharma. India’s retail inflation cooled off to a 25-month low of 4.2% in May, while IIP growth jumped to 4.2% in April. Lower inflation boosted FMCG stocks while unchanged interest rate by RBI and rate cut by China led to the rally in realty stocks. Now all eyes would be on the US CPI inflation data which is due later today and which would set the tone for tomorrow’s FOMC meet outcome. Nifty is finding support at lower levels and the overall setup is positive. We expect market momentum to continue with stock specific action in mid caps.

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