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Below is the Daily Market Commentary 25 May 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities witnessed third consecutive day of sell off impacted by weak global peers. Nifty opened positive but drifted lower in the absence of any follow up. The index closed near day’s low with loss of 99 points (-0.6%) at 16,026 levels. Broader market underperformed with Nifty Midcap 100 down -2.5% and Nifty Smallcap 100 down -3.5%. Among sectors, except for Banking and Financial Services, all other indices ended in red with IT being major loser down 3.4%.

Global markets were down led by fall in tech-heavy Nasdaq after Snap announced weak earnings forecast.

Back home, the Government announced various steps to control inflation like restriction on various export related products which negatively impacted sentiments. Also consistent FIIs selling, VIX above 25 levels and uncertain global environment is putting pressure on market. Investors would keep an eye on the minutes from the last U.S. Federal Reserve meeting which would be released later on Wednesday. We expect volatility to continue ahead of monthly F&O expiry on Thursday.

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