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Below is the Daily Market Commentary 08 March 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Indian markets, along with global equities continued to see volatility after Russia-Ukraine third round of talks failed to achieve any significant outcome.

Nifty opened lower in line with global peers. Increased Selling pressure pushed Nifty to 15,671 – below its previous day’s low. However there was some respite in the second half of the day on the back of short covering in domestic market as well as recovery seen in global markets.

Nifty ended its four day losing streak and managed to close above 16k levels with gains of 150 points (+0.9%) at 16,013. Broader market outperformed and closed in green with gains of more than 1%. Barring Metals and Oil & Gas, all other sectors closed in green with Realty being top gainer up more than 3%. While Pharma, Media, PSU Bank and IT were up more than 2% each.

After correcting by almost 15% from its Jan peak, Nifty 1-year forward valuation is now below its 10 year average of 19x. Even several large cap blue chip stocks are down 20-30% and are available at reasonable valuations making them attractive for long term investors. However, the near term market direction would continue to be driven by factors like the assembly election outcome, ECB and US Fed meeting - apart from the ongoing Russia-Ukraine conflict.

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