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Below is the Daily Market Commentary 22 June 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities fizzled out and traded in negative territory impacted by weak global cues, continued FIIs selling and depreciation in rupee. Nifty opened lower and remained under pressure through the day to finally end with a loss of 225 points (-1.4%) at 15,413 levels. Broader markets mirrored the benchmark and were down more than 1% each. All sectorial indices ended in red with Metals, Media, Realty and Oil & Gas being top laggards down 2-4% each.

Global markets were down 1-2% after UK’s inflation too climbed up to 40 year high of 9.1% for May’22. Further, investors remained cautious ahead of Fed Chair Jerome Powell’s two-day testimony to Congress later Wednesday.

Equity markets reversed its initial week’s gains as investors worry over slower economic growth amidst rising inflation and rate hikes. Overall market trend remains weak hence we suggest to continue with ‘Sell on rise’ strategy for traders. The broader market too has been under pressure in the last few days on account of heavy FII selling. Concerns over premium valuation as well as higher impact of inflation on their profitability led to sharper fall in broader markets compared to large caps.

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