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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 welcomed RBI’s decision to maintain its accommodative stance. Nifty opened positive and rallied towards the 17,650 mark. The index ended the day with gains of 142 points (+0.8%) at 17,606 levels. Broader market too ended in green up ~0.4%. Most sectors ended in green barring PSU Bank and Auto which ended flat to negative. Bank Nifty rallied 1% after RBI kept its key interest rates unchanged and retained the accommodative stance in its first policy meeting after Union Budget 2022. IT, Media, Metal, Financial Services and Realty were up ~1%. India VIX cooled off by 4.6% at 17.7 levels.

Global markets were positive ahead of the U.S. inflation data and strong earnings.

Nifty has rallied almost 600 points in the last 3 days from a low of 17043 on the back of value buying from domestic investors while reduced selling from FIIs. Stable monetary policy from RBI has also added to the positive sentiments. 7 phase 5 state assembly elections have started from today, would be keenly watched by market. Positive momentum in Nifty can continue towards 17,800-18,000 levels. Metals, Realty, Media, and Financials can continue to remain in action. 

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