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Below is the Daily Market Commentary 14 January 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Following the global peers, Domestic indices too opened negative and witnessed selling pressure. Nifty, after five days of continuous positive close, ended the day on weak note with miniscule loss at 18,256 levels. Broader market ended mix with Nifty midcap 100 flat, while Nifty smallcap 100 gained 0.8%. Among sectors except for IT, Consumer durables and Realty, all other sectors ended in red.

Global markets continued to witness sell off with hawkish comments from slew of US Fed officials indicating faster interest rate hikes to combat inflation. Although UK surprised with strong growth data that helped UK markets to outperform. The U.K. economy grew by 0.9% in November.

Record high inflation in US is dampening the sentiments in other wise positive macro data environment. Moreover, Markets have recovered sharply by more than 10% from its recent lows of 16,400 levels in just 20 days. Valuations are no longer cheap and require strong earnings delivery for sustenance of positive momentum in the market.

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