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Daily market commentary 14 September 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Indian markets displayed strong resilience in the face of negative global cues. While markets opened 1.6% lower, it showed steady recovery throughout the day to wipe out the entire opening loss and managed to close near day’s high with marginal loss of 0.4%. Nifty reclaimed its 18000 level and we expect the momentum to continue in the near term towards 18200. Nifty Bank Index is just 1% away from its all-time high, while still managing to close at record high on closing basis. Previous closing high was 41238 on 26th Oct 2021, while the intraday all-time high for Bank Nifty is 41829 on 25th Oct 2021.   Nifty is still ~3% away from its all-time high of 18604 touched on 19th Oct 2021.

Controlled inflationary environment v/s global peers, strong flows from retail, domestic as well as foreign institutions continue to drive the domestic equities. Although there can be bouts of volatility due to adverse global cues. Support base buying at lower levels are giving much needed strength to the Indian markets and any sharp decline will be good opportunity to buy in Indian equities. 

Today, action was seen in sectors like Banking, Cement, Media, Metals, and FMCG. Cement stocks were in limelight on the back of news of Adani owned Ambuja Cement looking to raise Rs10,000 crore for capex as well as acquisition plans. The momentum in mid cap Cement stocks is likely to continue on the back of expectation of increased M&A activities by bigger players due to changing industry-dynamics. Sharp rally was also seen in Vedanta after the company formed a JV with Foxconn for a semiconductor project in Gujarat. Technology stocks, however, are seeing pressure after there were downgrades by foreign brokers on the back of expectation of slower growth due to aggressive rate hike in US and news of big tech companies laying off people.

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