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Below is the Daily Market Commentary 11 February 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Following the global trend, domestic equities too witnessed selloff after 3 days of continuous rise. Nifty opened lower and remained under pressure throughout. It closed with losses of 231 points (-1.3%) at 17,374 levels. Broader market underperformed and closed with loss of 2%. All sectorial indices ended in red with IT & PSU Bank being top losers – both down more than 2% each. Rest of the sectors were down around 1% each. India VIX has cooled off from a high of 24 levels pre budget to around 18 odd levels in last two weeks post budget. Vix inched up by 5.5% today to 18.7 levels, however it needs to cool down further to bring some stability in the market

Global markets witnessed a free fall post release of U.S. consumer inflation data – which surged 7.5% YoY in January, the biggest annual increase in past 4 decades. The U.S. 10-year yield held close to 2% after inflation data that prompted investors to expect tighter monetary policy from the Federal Reserve.

Domestic markets have been closely following global movements with Nifty consolidating within the narrow range of 17,200-17,600 for the last couple of days. With the earning season ending on 15^th Feb, the focus will shift back to global cues. Volatility is expected to remain elevated in the near term with record high inflation and the US Fed board meeting schedule on Monday. Interest rate sensitives, metals and select pharma stocks are likely to remain in focus next week.

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