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Below is the Daily Market Commentary 10th November 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Equity markets opened gap down amidst weak global cues and remained lacklustre throughout the session though some buying interest in the second half trimmed some losses. The indices ended lower for the second consecutive session as market sentiments remained on edge on concern over inflation along with persistent foreign outflows. Among sectors, PSU Bank, Realty and Metal indices were down 1-2%, while buying was seen in the auto, pharma and oil & gas.

Global cues were mixed as while investors cheered strong earnings reports, caution prevailed ahead of the release of key U.S. inflation data. Further with China’s inflation data hitting 26-year high in October, sentiments got charred. Oil prices rose after industry data showed U.S. crude stocks unexpectedly fell last week just as near-term travel demand picked up with COVID-19 pandemic curbs easing.

Meanwhile, primary market is buzzing with three IPOs running simultaneously. Paytm – the biggest IPO ever, got subscribed 1.89x on its last day of subscription. Nykaa on the other hand, made a stellar debut – listed at almost double its issue price while its market cap crossed INR1lakh crore. Going ahead, market is likely to be range bound given mixed global cues and last leg of earnings season. Otherwise the domestic macro trends continue to be encouraging while active covid cases continue its declining path. Investors would react to US inflation data tomorrow while keeping an eye on U.K. GDP data.

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