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Below is the Daily Market Commentary 15 February 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities, along with global markets witnessed a strong pullback on the optimism of reduced geo-political risks after the reports of some Russian troops retreating to their bases. Nifty surged 3% (510 points) to close at near days high level at 17,352. Broader markets too closed with gains of 2.6%. All sectorial indices witnessed strong pull back from lower levels. Auto and PSU Banks gained 4% each. Media, Private Banks, Financial Services, IT, Realty and Consumer Durables gained more than 3%, while Metals, Pharma and Oil & Gas were up between 1-2% each. Volatility Index, India VIX cooled off by 10.3% to 20.6 levels.

On domestic front, India’s WPI inflation rose from 2.51% in Jan’21 to 2.96% in Jan’22, while IIP slumped to a 10-month low of 0.4% in December 2021.  

Nifty recovered its entire loss of Monday’s fall in today’s session on the back of short covering as well as change in sentiments post Russia pulling back some of its armies from the Ukrainian border. There was strong buying interest in Auto, banking and financials, IT & Real Estate counters. For now, Nifty seems to have taken support near the 16,800-17,000 zones which is forming a crucial base for the market to resume its upward movement. However volatility cannot be ruled out as several global factors continue to drive investor’s sentiments.  

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