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Below is the Daily Market Commentary 21 June 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic indices were positive for second consecutive day. Nifty opened gap up and continued to gain strength through out the day to close with handsome gains of 1.9% at 15639. Broader market too turned positive and closed with gains of more than 3% after witnessing relentless selling in Monday’s session. All sectorial indices saw renewed buying with Media, Oil & Gas, PSU Banks, Metals, IT, Consumer Durables and Realty 3-5% each.

Global markets made a comeback after last week’s intense selling. Although investors remained cautious as major central banks around the world raised interest rates.

Markets witnessed the much needed relief rally today after posting the worst weekly loss in 2 years. Positive global cues, fall in crude oil prices and short covering in derivatives segment drove the markets. Further, Value buying in beaten down sectors also helped market to gain some momentum today. Globally equity markets continue to remain worried over the expected aggressive rate hikes by central banks to curb record inflation and its impact on economic growth. However, on the positive side, crude prices have corrected by almost 10% from its recent peak, providing some breather to the Indian market. While the overall market set up continues to remain ‘Sell on rise’ – intermittent bouts of relief rally can’t be ruled out. Given the hawkish commentaries from Central banks and record high inflation, rate hike cycle is likely to continue over the next couple of months and would keep markets jittery. 

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