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

Domestic equities managed close in green despite increasing volatility and last three days of consecutive decline. Nifty made a positive start, but fell lower towards 17,000 levels in its initial tick. The index bounced back from lower levels and ended with minor gains of 53 points (+0.3%) at 17,266. Broader market underperformed with Nifty midcap 100 down 0.7% while Nifty smallcap 100 down 1.7%. Sectors were mixed bag with PSU Bank, Metal, Pharma, Auto, and Financial Services gainers. While Media, Realty, IT, Oil & Gas and Consumer Durables were laggards.

Global markets were mixed as investors await to assess the potential impact of U.S. inflation data over Fed’s monetary policy. Further, investors fussed over the prospect of the U.S. adding a further 33 Chinese entities to its export control list. Oil prices eased of after hitting $94/bbl propelled by US and Iran nuclear deal talk.

The forthcoming RBI policy outcome on 10^th Feb’22 will be a key driver for the market in the near term as it would impact liquidity and interest rates going ahead. Markets are witnessing increasing volatility due to various global as well as domestic factors. After 3 days of fall, Nifty witnessed some recovery from 17,000 odd levels – which continues to act as an important support level for the market.

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