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Daily market commentary 20 September 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities had a subdued start ahead of the US Fed policy outcome and US bond yields at a decadal high. Nifty extended its previous day’s downward trend and closed with a loss of 232 points (-1%) at 19901 levels. All sectors ended in the red. Weak global cues, surge in oil price to nearly 1-year high, and selling by FIIs are major concerns in the market. However, strong domestic economic data continue to support the market at lower levels. We expect the market to remain cautious in the near term amid major events, while profit booking in the broader market is likely to continue. Apart from the US Fed rate outcome on late Wednesday, two other large central banks i.e. BOE & BOJ are scheduled to announce their policy decision on Thursday.

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