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Daily market commentary 12 July 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Nifty opened gap down and continued with weakness throughout the session to close at days’ low at 16,042 levels, down 174 points (-1.1%). Broader markets were down 0.5%. Weakness was seen across the sectors except for Realty which gained marginally.

Global markets were negative for second consecutive day as worsening energy crisis and cautiousness ahead of release of U.S. inflation data on Wednesday dented sentiments. Brent Crude fell more than 2% below $105/bbl as a Covid-19 resurgence in China added concerns of economics slowdown. Fresh curbs are being seen in China to stop the spreading of the highly infectious BA.5 Omicron subvariant of the COVID-19 virus in the country.

Equity markets after bouncing 7% from its recent lows, have been lackluster from last two days and is witnessing selling at higher levels as investors await release of CPI inflation and IIP data in India on Tuesday and CPI data in US on Wednesday. The inflation data would provide direction to Central Banks next course of action. Apart from these, UK GDP and Manufacturing data will be released on Wednesday and China GDP data  on Friday. Secondly the earnings season has just started and market is in wait and watch mode as to how it unravels going ahead. After weak results of TCS, investors are keenly awaiting HCL results which are due today. Other companies to release results this week are ACC, Oberoi realty, BEL, HDFC Bank, Tata elxsi, LTTs, LTI, Angel one, Mind tree.

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