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Below is the Daily Market Commentary 12th January 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Domestic markets opened gap up amid positive global cues and ahead of 3QFY22 earning by 3 major IT companies today. Nifty closed the day with decent gains of 157 points (+0.9%) at 18,212 levels. Broader market were also positive with Nifty midcap 100/Nifty Smallcap 100 up 1.2%/0.9% respectively. All sectorial indices ended in green except for Pharma and Consumer Durables.

Globally markets rallied after Fed Chairman Jerome Powell indicated confidence in the U.S. economic recovery and reiterated that the central bank would tackle inflation.

Adding to the positive sentiments, Chinese inflation data showed that the consumer price index (CPI) contracted 0.3% month-on-month while growing 1.5% y-o-y in December. Also country’s producer price index (PPI) grew 10.3% y-o-y.

Inflation data to be released in India and US later today will be closely monitored by the market. Also the results from index heavy weight TCS, Infosys and Wipro would guide the sentiments. Going forward we expect market to remain steady on back of hopes of strong corporate earnings, sentiments around upcoming budget and improvement macroeconomic data.

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