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Below is the Daily Market Commentary 17 December 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Indian markets witnessed continued selling pressure in line with weak global cues. markets reacted negatively to the surprise rate hike by Bank of England, even as US Fed had maintained status quo few days earlier. Nifty plunged below 17000 levels while Sensex fell to around 57,000 levels. The indices ended the day with losses of 1.5%. Broader market too mirrored the fall and under-performed with both nifty midcap 100 and smallcap 100 down 2.6% each. Among sectors, except for IT, all other indices ended in red with media, PSU Bank and Realty down between 3-4%.

IT stocks were in lime light after Accenture reported strong quarterly numbers and upgraded its guidance. Wipro, HCL Tech, Infosys, Power grid and sun pharma were top gainers. While Indusind bank, Tata motors, ONGC, Kotak Bank and HUL were top losers.

Globally, markets saw sell off as central banks globally are tightening their monetary policy and  uncertainties over the impact of fast-spreading Omicron variant likely to hit economies. Geopolitical tensions between China and the U.S. flared again, thus adding negative market sentiments. Oil prices too weaken as surging cases of the Omicron Covid-19 variant raise concerns new restrictions may hit oil demand.

Overall market remains in a tight range with bearish undertone as selling pressure is intact at higher levels. Negative global cues, continued FII selling, absence of any positive trigger and increasing cases of Omicron is likely to continue putting pressure on the market. Thus traders are advised to maintain their negative bias in the market for next few days.

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