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Below is Daily Market Commentary 10 March 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Indian equities opened on a firm note in tune with its global peers. The five state election took the limelight to direct the market with potential outcome in favour of BJP, driving positive sentiments. Nifty opened gap up and extended the rally for third consecutive day. The index surged by ~2% during the day and finally settled with gains of 250 points (+1.5%) at 16,595 levels. Broader market ended the day with gains of ~1%. Among sectors, except for IT, all other indices ended in green with FMCG being top gainer up 3%.

Global markets remained mixed with US & Asian markets positive as the resumption of diplomatic talks between Russia and Ukraine in Turkey boosted investor confidence. While European markets witnessed some weakness ahead of ECB meeting outcome.

Nifty has seen a sharp recovery of around 6% in the last 3 days. However it is still down 10% from its Jan’22 peak. In contrast, the broader market has witnessed a much sharper sell-off. Of the NSE 500 constituents, 72% of the stocks are trading more than 20% lower from their respective 52-week highs. While the geopolitical and inflation-led uncertainties play out, we find price-value equation turning favourable. The healthy earnings visibility can act as a cushion in an otherwise fragile external situation. Thus we would recommend investors to buy in this volatility in staggered manner.

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