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Daily market commentary 02 January 2023 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Markets welcomed 2023 on a high spirit in the absence of global cues. Strong macros and expectations of healthy corporate earnings provided the support to domestic equites. India’s manufacturing PMI rose to 13month high to 57.8 in December, while, GST collection too rose by 15% in Dec’2022 to ?1.49 lakh crore, thus, supporting overall sentiments in the market. Nifty opened higher and remained in positive territory throughout the day to close with gains of 92 points at 18197 levels. Majority sectors ended in green.

On the global front key data points that would be keenly tracked would be the release of FOMC meeting minutes, PMI and nonfarm payroll data for US during the week. Going forward, we expect market to remain steady with a positive bias ahead of the Dec quarterly results and run up to the crucial Union Budget in February. This should drive sector specific action in the market. Metals are likely to continue its northward movement as it benefits from the exports duty hike in China along with fall in the US dollar index – which is down to 7 months’ low at 103. Some stock specific action would be also seen in Auto sector stocks after it reported decent December sales numbers. Oil producing companies would be focus as Brent crude prices surged to 1 month high.

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