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Daily market commentary 16 December 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities slipped into negative territory following US Fed hawkish commentary and weakness in global markets. Nifty open gap down and declined for third consecutive day to close with loss of 146 points (-0.8) at 18269 levels. Broader market too saw some selling pressure with Nifty midcap 100 down 1.6% while smallcap 100 down 0.6%. All sectors ended in red with PSU bank down more than 3%. Markets seems to have taken pause after making new highs with Nifty down by 3% in last few. Markets are likely to remain in consolidative range due to lack of triggers in the near term. Also lower participation from institutional investors due to upcoming year-end holidays would keep the markets lackluster. Though investors would keep eye on US Home Sales and GDP (QoQ) numbers to be released next week. On sectorial front, sugar stocks are likely to remain in lime light on after news reported, government might consider increasing sugar export quota for the current 2022-23. However, some selling might be seen in Banking stock especially in PSU banks on account of profit booking after the sharp rally in last few months.

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