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Daily market commentary 10 September 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities edged higher amid positive global cues. Nifty opened gap-up but failed to sustain at higher levels and closed with marginal gains of 34 points (+0.2%) at 17,833. India VIX cooled off by 3% to 17.7 levels.

Global markets recovered after the bond yields came off from recent high. Further, ECB’s rate hike by 75bps came in line with expectation.

Indian equities although closed positive, faced resistance below 18k levels as markets failed to sustain yesterday’s momentum and fell from day’s highs. Switching out from recent outperforming sectors led to profit booking in the market today. Fresh buying was witnessed in IT and metals while profit booking was seen in Cement, real estate, consumer stocks. Global markets too are trying to shrug off growth and inflation concerns and are likely to make a positive weekly close after 3 consecutive weeks of losses. Domestic markets are likely to remain firm on the back of healthy macro data, strong intuitional flows and improvement in festive demand. Expect sectors linked to capital expenditure, consumption and credit growth to do well over the next few weeks.

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