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Below is the Daily Market Commentary 16 November 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Equity markets opened negative and witnessed selling pressure throughout the day. Nifty closed 110 points down (-0.6%) at 17,999 and Sensex closed 396 points down (-0.65%) at 60,322. Markets were dragged down by losses in energy, banking and oil & gas stocks, amid rising inflation concerns. The broader market, remained mixed with Nifty Smallcap 100 ending in green. Sectorally, Auto was up over 2% on expectation of improved outlook and gradual recovery in chip shortage situation, while IT index up 0.5%. On the other hand, PSU bank, Pharma and Energy indices were down more than 1% each.

Domestically, the overstretched valuations with a number of global financial services firms maintaining cautious view on Indian equities affected the markets sentiments. Global markets remained flat. With gold touching 5-month high due to concerns of rising inflation and strengthening currency and bond yields. 

Investors would now keep an eye a slew of data including Euro GDP, US retail sales data. Primary market continues abuzz with one more IPO opening up on Wednesday. Overall market is in consolidation mode as valuations are rich despite good quarterly performance. Further, global cues are also keeping markets volatile. We expect the long term fundamentals of the market to remain positive and hence investors can look to accumulate good quality stocks. However increased volatility could be seen in the near term.

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