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Daily market commentary 27 December 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Indian equity continued its strong momentum for the second day in a row as reports of further rollback of Covid curbs in China lifted sentiments. Nifty opened positive and after an initial dip, regained its strength in the second half to close near days’ high with gains of 118 points (+0.7%) at 18132 levels. Broader market too maintained its strength with both Nifty Midcap 100 and Smallcap 100 gaining 1%/1.2% respectively. Except FMCG, all sectors ended in green. Metals rallied more than 4% on hopes of revival in demand post relaxation of covid restrictions by China. Even crude oil prices surged to 1-month high led by improving demand expectation in China and freezing weather across the US which prompted refinery closures. Given absence of any major global events due to year-end holidays and stable economic outlook for India, we expect the market momentum to remain positive in the near term.

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