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Daily market commentary 04 October 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Positive global cues provided strong jump to domestic markets. Nifty opened positive and gained strength throughout the day to close with gains of 2.3% at 17,274. Asian equities were closed while US markets gained on hopes of some support from FED after the country’s manufacturing data came in lower than expectations.Global factors have largely been the reason for the increased volatility in last couple of weeks as domestic factors have consistently remained positive. However, now the US markets seem to be consolidating after falling to their 52 week lows.

Indian Markets are showing strength after making near term bottom around last week’s Nifty low of ~16800 levels. We expect momentum in Nifty to continue towards 17650-17700 zone. The earning season is about to begin with TCS reporting its result on 10^th Oct’22. Being seasonally strong quarter, IT companies are expected to report healthy 9% constant currency QoQ PAT growth in Q2. However, commentary around weakening global macro and adverse FX impact would be key monitorable. Pre quarterly updates from banking and financial companies indicate strong Q2FY23 earnings, hence this sector could remain in momentum in the near term. We expect stock specific action with pre quarterly updates coming in over the next few days.

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