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Below is the Daily Market Commentary 10th January 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Indian equities opened gap up and traded firmly ahead of expectation good 3Q FY22 result earnings. Nifty reclaimed its 18,000 mark and closed with decent gains of 197 points (+1.1%). Broader market too performed in line to close with gains of ~1%. All the sectorial indices were trading in the green with PSU Bank and Media gaining 2-3%, followed by Auto, Realty, Private Bank and Financial service.

Major global markets continue to trade with cautious as investors await U.S. inflation data and comments from Federal Reserve Chairman Jerome Powel that could give any indication on an early rate hike, lifting bond yields yet further. Also, the rising coronavirus cases globally also threatens to crimp consumer sentiments.

Markets have gained momentum in past few days on back of low impact of Omicron variant leading to less stringent restrictions/lock down by various government authorities. This has raised hope of economic recovery along with expectation strong corporate earnings. After two strong quarters of earnings growth, we expect Nifty to register another healthy quarter of 22% YoY growth in 3QFY22. The growth will be driven by four sectors – Metals, BFSI, O&G and IT. 

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