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

Domestic equity had a weak opening but saw a smart recovery towards the end amid a drop in UK inflation and short covering ahead of the FOMC meeting minutes release along with US IIP data. Nifty opened lower but gradually climbed up to close marginally positive with gains of 30 points at 19465 levels. Action was seen in the Nifty smallcap, which was up 0.58%. Sectorially it was a mixed bag with buying seen in Realty, Pharma, IT, and Auto. EV focus companies were in the limelight after the government approved Rs.57613cr for EV Bus Services. The market has been witnessing pressure on account of weak global cues especially because of the faltering of the Chinese economy and Fitch's warning to downgrade US midsized banks. Even on the domestic front sharp surge in inflation data and weak monsoon progress in the month of August’23 seems to have dented the investor's sentiments. We expect this weakness to persist in the market in the near term in the absence of any positive trigger.

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