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Daily market commentary 06 August 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities saw a lackluster trade amid cautious global environment. Nifty opened higher and traded in a range to close flat at 17656 levels. Buying continued in Mid & Small caps. Action was seen in sugar stocks on the back of rise in prices due to global shortage and likely allowance of exports by government from October. Tyre stocks maintained their positive momentum on expectation of strong demand and margin expansion ahead on account of fall in natural rubber prices.

Global markets were mixed as investors worry over looming energy crisis in Europe and fear of tighter monetary policy. Dollar index touches 20 year high while Euro hit fresh 20-year low.

Markets continued to trade sideways and seems to be stuck in a range in the absence of any major triggers domestically. However, global markets were jittery due to rising energy crisis in Europe and tightening monetary policy which dampened investor’s sentiments. This week ECB policy meet is scheduled where members are expected to take up front-loading of rate hikes. Markets participants will also be keeping an eye on the EU energy ministers meeting that is scheduled later this week to discuss measures to tame spiraling natural gas prices. US Service PMI data for month of August will be released on Tuesday.

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