IGI Logo

Below is the Daily Market Commentary 28 March 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Equity markets witnessed some late buying today as sentiments turned positive post resumption of international flights after two years and RBI governor’s status quo to support economic growth in its upcoming policy. Nifty opened flat and after initial dip, bounced back to close with gains of 69 points (+0.4%) at 17,222 levels. Broader market closed in red with Nifty Midcap 100 down -0.2% while Nifty Smallcap 100 down -0.7%. Among sectors, PSU bank was top gainer – up 1.2%, followed by Oil & Gas, Private Bank, Metal, Media and Auto. IT, Pharma and Consumer Durables were among the losers.

Global markets are positive as investors monitor developments in the war between Ukraine and Russia with peace talks set to take place in Turkey this week. While Oil prices were down on fears of reduced demand from China, as a surge in COVID-19 cases stimulated to instigate a two-stage lockdown in Shanghai.

Domestic market has entered into a consolidation phase with key benchmark Nifty stuck within 17,000-17300 range. Despite several challenges like escalating inflation concerns, elevated commodity prices including crude oil, continuing Russia-Ukraine conflict and heavy FII selling, markets have remained resilient for now. A move beyond this range on either direction could set the market course for the near term. While the heavyweights are mostly sideways, there has been some momentum in the broader market. Removal of Covid restrictions as well start of full schedule of flights is fueling demand for travel, tourism and Hospitality sector stocks. Also the announcement of merger between PVR and Inox has led to interest in multiplex stocks.

Above views are of the author and not of the website kindly read disclaimer