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Below is the Daily Market Commentary 31th November 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities were strong today on the back of expectation of progressive budget and positive global cues. Nifty opened gap up and held on to its gains throughout the day as the Economic survey projected India’s growth in FY22 at 9.2%. FY23 real GDP growth is forecasted at 8-8.5%.

Nifty ended with gains of 238 points (+1.4%) at 17,340 levels. Broader market too performed inline up more than 1%. On sectorial front, all indices ended in green with Realty being top gainer up more than 3%, followed by IT, PSU Bank and Consumer Durables up more than 2%.

Global markets stabilised as volatility cooled off. However, Chinese data signalled a further slowdown in the country’s economic recovery, as PMI was 50.1, and the non-manufacturing PMI was 51.1, in January. The high probability of U.S. Fed increasing and stand-off between Russia and Ukraine continue to weigh on investor sentiment.

The turmoil between Russia and Ukraine has pushed oil prices climb to near seven-year peaks, ahead of Wednesday’s meeting OPEC+, to discuss future output.

The market will closely watch the developments during the budget session and react accordingly. Nifty has managed to hold above its key level of 17,000 mark for last few days. Markets are likely to remain volatile tomorrow and 17,000 would be a key level to continue the bullishness. Some of the sectors that would remain in focus ahead of the budget tomorrow are Capital Goods, Infra, housing, Real Estate, PSU Banks, etc.

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