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Below is the Daily Market Commentary 27 April 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Equity markets continued to witness wild swings with gains one day and down next day. After Tuesday’s rebound, markets again drifted lower on Wednesday as investors got worried about global growth, increasing Covid cases in China and disappointing earnings from US Tech majors. Also monthly FNO expiry on Thursday added to the volatility. Nifty opened negative and ended the day with loss of 162 points (-0.9%) at 17,038 levels. Broader market closed with loss of more than half a percent. All sectorial indices ended in negative territory with Consumer Durables and Financial Services being down more than 1% each.

Global markets were weak as energy tensions heightened after Russia halted gas supplies to Bulgaria and Poland. While lower than expected earning season so far and concern over economic recovery due to rising COVID cases in China led impacted investor’s sentiments

IPO market has resumed after a pause with two IPOs opening for subscription this week, followed by the much awaited LIC IPO, that will hit Dalal Street on 4th May 2022. Government is likely to raise ~Rs21,000 crore by divesting 3.5% of its holding - valuing the insurance behemoth at around Rs 6 lakh crore. The IPO is priced at Rs 902-949, with a discount of Rs 60 for policyholders while employees and retail investors would get Rs 45 discount.

We expect the market volatility to continue, with the index trading in a broader range. Continuous selling by FIIs and weak results by few heavyweights has further added pressure to the market. Nifty respected its crucial support levels on the downside, indicating emergence of buying interest at lower zones even after weakness due to Global market. Nifty needs to hold above 17,000 levels for an up move towards 17,200-17,250 zones. Given the on-going result season, we are witnessing strong reaction on stocks on either side based on the result outcome. Hence we suggest investors to remain focused on selective stocks in the market which are resilient on the back of strong quarterly results.

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