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Below is the Daily Market Commentary 15 September 2021 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Equity markets opened flat on account of weak global cues but gradually gained momentum and hit fresh record highs as risk appetite of investors improved with government announcing various incentives under PLI schemes. The government has approved production linked incentive scheme for auto industry, auto-component industry, drone industry and telecom industry to enhance India's manufacturing capabilities. The market witnessed across-the-board buying especially in IT, Auto and Telecom space. OIL & Gas stocks too rallied as oil prices touch 6-week high. Global cues continued to be weak as slowdown in US consumer inflation failed to overcome concerns about the fast-spreading Delta variant, resulting in slowed economic growth and pandemic-related shortages of labour and supplies continued to drive up prices. Further, weak Chinese economic data, along with China's tightening grip on its technology companies and a widening liquidity crisis kept investors on edge.

The market might be volatile on account of fragile global cues. US Fed and ECB’s decision with regards to stimulus tapering plans are the most awaited decisions and would keep the markets oscillating. Metals and oil prices along with FII flows would also continue to influence the market. Valuations too are rich and hence could lead to bouts of profit booking. But the overall sentiment in the domestic market remains positive, as controlled Covid cases domestically and strong pick up in vaccination drive, has led to healthy pick-up in economic activities, thus reflecting in continuous improvement of macro data points and positive earnings expectation.

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