IGI Logo

Below is the Daily Market Commentary 16 February 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities witnessed wave of volatility amid uncertainty arising due to global factors. Nifty opened positive but gyrated between red and green in the absence of any direction. The index closed with minor loss of 30 points (-0.2%) at 17,322 levels. Broader market was mixed with nifty midcap 100 down -0.3% while nifty smallcap 100 up +0.7%. Sectorial indices ended in mix, with Realty, Consumer Durables, Oil & Gas, Pharma and FMCG ending in green. While PSU Bank, Media, Metals, Financial Services, Auto and Private Bank closed in red.

Global markets were trading on firm note as signs of tension between Russia-Ukraine ease off, signalling Russia’s preference for a diplomatic solution. Further, investors reacted to China's inflation data which came below expectation, boosting markets. China's CPI for January grew 0.9% y-o-y, slightly lower than expectations. The producer price index for January grew 9.1% y-o-y.

Indian Markets kept dancing to the tunes of global news flows from Ukraine. After initial fall, markets witnessed a sharp pull back in the noon as media reported de-escalation of tensions between Russia and Ukraine. However the market turned negative once again after warning from NATO saying that Russia is continuing military build-up around Ukraine. This increase in volatility is likely to remain in the near term as market continues to focus on the geo-political developments around Russia and Ukraine. Other major factors like inflation and interest rate too continue dominate the Global narrative.

Above views are of the author and not of the website kindly read disclaimer