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

Indian Equities wilted under global pressure and gave up all its weekly gains. Nifty plunged by 380 points during the day and closed with loss of 347 points (-2%) at 17,531 levels. The index failed to sustain above its key support levels of 17700-17800, indicating overall weakness in the market. Even India VIX spiked by 7.8% to near 20 levels. Going forward, we expect weak trend to continue until clarity emerges on the quantum of the rate hike being taken by US Fed in its meeting scheduled next week on 21^st Sept. Also ECB and BOE policy announcement is due next week which would add to overall volatility in the market.

All sectorial indices ended in red with Media, IT, Realty and PSU Bank being major laggards. Logistics stocks were in flavor this week ahead of National Logistics Policy (NLP) to be announced by the government on 17^th Sept., with aim to accelerate freight movement and bring down logistics costs in from 14% to 8% in next five years.

Global markets continued to remain under pressure after US reported healthy Retail sales and initial jobless claims data, thus, raising probability of more aggressive stance from US Fed in upcoming meeting.

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