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Below is Daily Market Commentary 14 March 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities opened flat but gained momentum during the session, extending the rally for the fifth consecutive day. Progress in Russia-Ukraine peace talks and declining crude/metal prices supported positive sentiments. Nifty closed near day’s high with gains of 254 points (1.5%) at 16,885 levels. Broader market gained marginally with Midcap100/Smallcap100 up 0.2% each. Banking and IT along with Media drove the market today while Metals, Oil & Gas, Realty and Pharma were laggards.

Global markets were mixed amid hopes for a diplomatic solution to the Ukraine war, but cautiousness prevailed as uncertainty looms with the continuation of the war. Also given the US Fed meeting due this week and China announcing lockdown once again due to rising in Covid cases kept the market vigilant.

The US Fed meeting would be the key event this week where more than 0.25 bps rate hike could have negative impact on the market. Even Bank of England, Bank of Japan and other Central banks like that of Russia, Turkey, Indonesia and Brazil will be meeting this week to decide on interest rates. Nifty has seen a strong recovery the last 5 days – up almost 8% from its recent low and has managed to close above the crucial 200 DEMA of 16750. The positive momentum in the market is likely to continue till the peace talks doesn’t fail and the commodity prices continue their downward trend. While IT sector continues to shine in the current volatile environment, there is some value buying emerging in select Banking stocks. Also few commodity related counters like sugar, paper, fertilisers are likely to remain in action.

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