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Below is the Daily Market Commentary 24 June 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic markets gained for second consecutive day in line with positive global cues. Nifty opened gap up and remained in green throughout the day and finally closed with gains of 143 points +0.9% at 15,699. Broader market outperformed and closed with gains of more than 1.4%. Except for IT, all sectorial indices ended in green with Media, Auto and Banking gaining the most.

Global markets were positive after the two day US Fed testimony to Congress came to an end with strong commitment to bring down inflation. Further fall in bond yields boosted risk sentiments. European Indices too gained on the back positive macro data.

Indian markets have seen some recovery from its lows of last week on the back of fall in crude oil prices and in-line commentary from US Fed. Bren oil prices have fallen by 16% from its recent peak bringing some relief to the inflationary environment. Further, RBI in its minutes highlighted that inflation is expected to come down to 4% in medium term, while revival of economic activity remains steady and is gaining traction. Also Monsoon is progressing well, rainfall deficit narrowed to 2% from 32% last week. However, concerns of global recession, monetary tightening as well as depreciating rupee would keep the upside limited. We expect market volatility to continue next week with Nifty approaching its strong resistance around the 16,000 mark.

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