Daily market commentary : Domestic equities saw a spill over effect from the global markets following the release of strong US JOLTS jobs data Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd
Daily market commentary 18 September 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Domestic equities saw a spill over effect from the global markets following the release of strong US JOLTS jobs data. It shows the resilience of the labor market in the US, raising the expectations of additional rate hikes. Nifty traded in negative territory for the second consecutive day and closed with a loss of 93 points (-0.5%) at 19436 levels. The broader market was down more than 1%. Selling was seen across the sector, except for FMCG & IT. The recent spike in U.S. Treasury yields has been taking a toll on equity markets globally, turning investors cautious in the near term. This along with persistent FIIs selling has pulled the Nifty down by 4% from a recent high of 20222 levels. We expect weakness to persist in the market in the coming weeks till the headwinds recede. The Q2 earnings season will start next week and is expected to maintain the growth momentum of previous quarters. Even the pre-quarterly updates released so far indicate healthy traction. Market direction going ahead will depend upon the combination of global/local macros and earnings delivery along with management outlook.
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