IGI Logo

Below is the Daily Market Commentary 8th October 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Indian indices opened on a firm note and traded positively throughout the day as RBI kept key rates unchanged and maintained status quo on its accommodative stance. The central bank also retained the GDP growth forecast at 9.5% for the current fiscal, while it revised the CPI inflation projection downward to 5.3% which also supported sentiments. The indices ended the day in green with 0.6% gain while broader market closed with gains of 0.5%-1.0%.  Among sectors, IT was up nearly 2% ahead of TCS 2Q earnings. Buying was also seen in auto, media, PSU Bank and Oil & Gas, while some profit booking was seen in realty which was down 3%.

Globally, markets remained mixed as investors were cautious ahead of U.S. payrolls data. European markets were weak as German trade data came in marginally below expectations. While US and Asian markets were positive with China releasing better-than-expected economic data and easing concerns on the US debt ceiling. U.S. Senate has approved to temporarily raise the government's debt limit and thus avoiding the risk of a default.

Domestic markets are holding up strong on the back of several positive factors including macro data, strong pre-quarterly numbers and healthy commentary from corporates for the festive season. Although volatility has increased due to global factors as well as elevated valuations. In this environment of global uncertainty and sector specific action, Investors should make use of small dips in the market to accumulate fundamentally strong stocks.  Markets on Monday will further react to American jobs report to be released on Friday and post market hours are quarterly results of TCS.

Above views are of the author and not of the website kindly read disclaimer