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Below is the Daily Market Commentary 08 April 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic markets welcomed RBI’s move to maintain accommodative stance in its policy meet on Friday. While RBI kept the benchmark interest rate unchanged at 4%, it lowered the FY23 growth forecast to 7.2% vs 7.8% earlier and raised Inflation estimate to 5.7% vs 4.5%. Nifty opened positive in line with its global peers and snapped its 3 day losing streak to close with gains of 145 points (+0.8%) at 17,784 levels. Broader market too closed in green with Nifty Midcap 100 up +1% and Nifty Smallcap 100 up +0.4%. Except for IT, all other sectors ended in green with Metals and FMCG being top gainers up 2% each.

Nifty has remained sideways after briefly crossing 18k mark earlier during the week. Overall, equity markets have shown strong resilience even though it faces headwinds from uncertain global environment and persistent inflation. Also, India VIX has further cooled down by 7% to below 18 indicating stability in the market.

Momentum was seen in several broader market themes like Defence, Power, Realty and Tyre sector stocks. Q4 FY22 earning season will kick off from next week and would be the key factor for market direction going forward.

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