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Below the Daily Market Commentary On 20 December 2023 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Domestic equities opened on a strong note and Nifty made a new high of 21593 on back of positive commentary by IMF where it called India a ‘star performer’ and projected India to contribute 16% to global growth. However, profit booking at higher levels dragged Nifty down to close with loss of 303 points (-1.4%) at 21150 levels. All sectors ended in red including mid-cap and small-cap indices. Volatility index India VIX surged by 4% to 14.45. Domestic equities are witnessing sell off after a sharp run up of more than 12% in last seven weeks. We expect market to consolidate in the near term as investor resort to profit booking and access the potential risk of rising covid cases especially in Kerala and Karnataka, making them cautious in the market. Overall, we remain positive on the market and expect recovery after a pause supported by global macros along with interest rates peaking out and healthy domestic macros. IPO market is currently is seeing strong traction with two IPOs listing at premium while seven IPOs open for subscription.

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