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Daily market commentary 20 December 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic sentiments were dented in line with global peers after Bank of Japan in a surprise move raised interest rate by 25bps to 0.5%. Further, rising death cases in China after easing of covid restriction instilled more fear. Nifty opened gap down and witnessed selling pressure for most part of the session. However, index recovered by almost 200 points from the lows in the last half an hour following positive opening of dow futures which helped Nifty finally close with minor loss of just 35 points at 18385 levels. Buying was seen in beaten down IT counter.

Domestic markets succumbed to global pressure on back of surge in bond yields, hawkish stance by central banks globally and rising cases of Covid in China. There is a growing recessionary fear among investors which is fading hopes of a Santa Claus rally. Market is expected to consolidate with focus shifting towards budget-oriented sectors.

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