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Below is the Daily Market Commentary 16 June 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic markets opened positive but witnessed one way selling pressure since the start of the session to finally end near day’s low. Nifty plunged 357 points from day’s high to end at 15360 levels (-2.1%). Global markets too slumped during the day over recessionary fear after the US Fed raised interest rates by 75bps - the biggest increase since 1994. Further the Fed Chair Jerome Powell signalled another big move (50-75bps hike) next month, intensifying its fight to contain rampant inflation. It has sharply increased the interest rate target to 3.4% for 2022 and 3.8% for 2023.

Going ahead, markets are likely to stay under pressure amidst worry over significant economic slowdown. Further delay in monsoon is also denting sentiments as it might further push the rural demand recovery. In the absence of any positive trigger and continuous selling by FIIs, we would suggest caution to traders and advise not carrying any positions overnight given the uncertain market conditions. On the other hand, investors can slowly start accumulating quality stocks on a very selective basis without getting into aggression.

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