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Below is the Daily Market Commentary 02 May 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Indian markets extended the losses after taking cues from its Asian peers. Nifty opened lower and remained under selling pressure throughout the day to finally close with loss of 218 points (-1.3%) at 16,954. Broader market underperformed with fall of 2%. Among sectors except for Private Banks, all other sectors ended in red - Realty being worst performer down more than 3%, followed by Metal, Oil & Gas, Media, Pharma and IT down more than 2% each. Volatility index, India VIX surged by 16% to 21.3 levels.

Global markets decline sharply as fears of slowdown in China, weak earning season, aggressive interest rate hike in near term and ongoing Russia-Ukraine war overshadowed Emmanuel Macron’s victory in the French presidential election.

We expect markets to remain volatile amid worries about inflation and its impact on corporate earnings, while also fuelling concerns over aggressive US Fed rate hikes in the near term. However, stock specific action may continue as we are progressing into earnings season. Nifty is now again below 17,000 levels and weakness may continue towards 16,650-16800 zones. Market is likely to remain volatile in the broader trading range with absence of follow up on either side. We suggest investors to remain focused on selective stocks in the market which are resilient on the back of strong quarterly results.

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