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Daily market commentary 5th July 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic indices made a positive start amid positive global cues and strong India’s services PMI data which expanded the most in 11 years to 59.2 for the month of June. Nifty opened positive and crossed 16k mark during the session. However, it fell  in the last hour of the session following the weakness in European markets and US Futures. It ended the day with loss of 36 points at 15798 levels. Broader markets too ended in red with Nifty midcap 100 down 0.3% while Nifty smallcap 100 ended 0.1% lower. Except Metals and Pharma, all sector close with negative bias.

Global market traded cautiously ahead of US Fed minutes meeting to be released on Wednesday. However, reports of US to roll-back some of tariffs on Chinese consumer goods this week and healthy economic data released by China helped to tone down some fear.

Nervousness ahead of the US Fed meeting minutes as well as expectation of weakness in the upcoming results season made investors to book out from the intraday gains. Even Indian rupee touched a new record low adding to the overall weakness in the market. Nifty briefly crossed 16000 mark but lost momentum in the last hour with selling pressure witnessed in IT, Banking and Auto. Markets would continue to track global cues as well as pre-quarterly updates in the near term. The result reason which would be a key driver for the market would start with TCS announcing its results on Friday.

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