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Below are Quote on Daily Market Commentary 16 June 2021 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Equity market opened marginally down and drifted further lower to end near days’ low. Both NIFTY/Sensex fell 102/271 points (-0.6%/-0.5%) at 15,768/52,502. The broader market too fell with Nifty Midcap 100 /Nifty Smallcap 100 down ~-0.9%/-0.5% respectively. Majority of the sectors ended in red with Metals being the biggest loser – down -2.9% followed by PSU Banks, Infra, Realty and Media – all down more than -1%. Financials, Private Banks, Pharma and Energy were other losers for the day. on the other hand, FMCG and IT were the only sectors to end with gains of +0.6%/+0.3%. India VIX, the volatility index, inched higher by 1.8% to end at 14.87 levels.

Global cues were weak as there was nervousness ahead of the US Fed MPC meet and crude oil price surged to above $74/barrel. On the domestic side, Nifty snapped its four-day winning streak to end near days’ low, led by RIL, financials and L&T. Profit booking emerged as investors await Fed's policy statement, due later in the day. Metals stocks tanked post the report that China has ordered state firms to curb overseas commodity exposure. There were also reports that China may release State reserves for Copper, Aluminum, and Zinc. Fertilizer stocks gained in the last hour after the news that the Cabinet has approved Nutrient based subsidy rates for FY22 and increased subsidy rate for DAP fertilizer. Tata Steel, Hindalco, JSW Steel, Power Grid, IndusInd Bank, Reliance, Grasim, Cipla, L&T and UltraTech were among the top Nifty losers. On the other hand, Tata Consumer, Nestle, ONGC, NTPC, Hindustan Unilever, Bajaj Finserv and Infosys were among the gainers.

Technically, Nifty formed a Bearish candle on a daily scale and needs to hold above 15750 zones to witness an up move towards 16000 zones while on the downside support can be seen at 15700-15600 zones.

Domestic Market may consolidate for sometime before resuming its rally. US Fed policy statement due later today (Wednesday) would lend direction to the global markets. Though US Fed is not expected to take action this time in its MPC meet but investors would keep an eye on any hint at its future tapering plans given the recent surge in consumer prices. Also, investors would closely track the surging crude oil price, which holds importance from the domestic point of view, as global commodity rally would start hurting India, once energy prices start picking up. Monsoon, opening up of the economy in a phased manner and the pace of vaccination going forward would also decide the further direction of the market.

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