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Daily market commentary 29 July 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities continued its northward journey for the third consecutive day on the back of healthy corporate earnings and positive global cues. Nifty opened gap up above 17k zone and maintained its momentum throughout the day to finally close near days’ high with handsome gains of 229 points (+1.4%) at 17,158 levels. Broader market too clocked gains of more than 1%. Barring PSU Banks, all other sectorial indices ended in green with Metals and Oil & Gas being top gainers - up 2-3% each.

Global equities were trading higher as host of strong earnings dominated the market despite US GDP declining at 0.9% for the second quarter. Investors now await Euro quarterly GDP data.

Markets have recovered by 13% from its low of 15183 in June led by softening in commodity prices, reduced intensity of FIIs selling, healthy monsoon and better than expected earnings season. Infact, FIIs have been buyers in few sessions lately, with total outflow in July getting restricted to just Rs7,500 crore as compared to Rs58,100 crore in June. Two major events (US Fed rate hike and US GDP data) during the week were on the expected lines and were already factored in, thus fuelling rally in the global as well as domestic market. Now all eyes would be on RBI and BoE monetary policy next week where investors expect them to soften their aggression a little, following US Fed. Apart from these, PMI data would be released by both India and US along with US jobless claim data. Going ahead, next week investors would also watch out for OPEC meeting outcome which might keep oil prices on edge. Overall we expect the positive momentum to continue in the market with bouts of volatility. Stock specific action would continue as the busy results season continues.

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