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Daily market commentary 22 June 2023 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities snapped its two-day winning streak due to profit booking and weak global cues. Nifty was just whiskers away from making new highs when profit booking dragged the indices down to close with the loss of 86 points (-0.5%) at 18771. Broader markets underperformed with Nifty midcap and smallcap witnessing selling pressure (down 1% each) after a strong run-up in the last three months. Except for Metals, all sectors ended in red.  PSU Bank, Realty, Oil & Gas, and FMCG were major losers. Nifty is facing continuous resistance near its lifetime high. We expect further momentum in Nifty, once it is able to cross this physiological mark and make new highs. A hawkish statement by the US Fed Chairmen and the high UK inflation data dented the investor’s sentiments in the near term. On the domestic front, poor monsoon (31% below normal) so far, has further impacted sentiments.

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