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Market commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic indices rebounded on back of positive global cues. Nifty, after opening gap up, traded side-ways throughout the session and finally closed near day’s high level with gains of 312 points (+1.9%) at 16,975 levels. Broader market too gained with Nifty Midcap 100 up 2% and Smallcap 100 up 1.2%. All sectorial indices ended in green with Realty being top gainer up 3.6%. While Oil & Gas, Metals, Auto, Banking and Consumer Durables were up more than 2% each.

Global markets were positive after China’s government announced it would roll out stimulus to boost economy post outbreak of fresh corona cases. Further, hopes of progress in ceasefire negotiation between Ukraine and Russia lifted the investor’s mood.

Positive momentum in the market continued with Nifty closing at the highest level since 24^th Feb (14 trading sessions) the day Russia invaded Ukraine. Nifty is marginally below 17,000 mark and is now above the 200 DEMA and also its resistance zone of 16,800. Even India VIX has cooled off significantly to 24.12 from a high of 33.97, thus supporting the bullish sentiments. Market would now be closely watching the outcome of US Fed meeting which would give direction to global interest rates. Also we are witnessing increasing interest for beaten down sectors like Banking, Auto and Cement sectors.

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