Below is the View On Daily Market Commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
“Indian equity market after seeing gap up opening, witnessed a highly volatile session but finally managed to end with gains. The selling pressure accelerated after the news of some tension at India China border. Nifty fell by more than 300 points from its intraday high of 10046, but managed to recover 200 points from lower levels to end at 9,914 levels ( 100 points higher; +1.0%). Sensex ended 376 points higher (+1.1%) to close at 33,605 level. Broader markets ended on a mixed note with Nifty Midcap 100 up 0.4% while Nifty Smallcap 100 down 0.1%. Sectorally it was a mixed bag. Private Banks (+1.9%), Financial Services (+2.8%) and Metals (+1.4%) were the major gainers while PSU Banks (-0.9%), Pharma (-0.6%) and FMCG (-0.4%) were laggards.
Domestic market in the early trade was driven by positive global cues after US Federal Reserve launched a massive program under which it will buy up to USD 750 billion in corporate bonds to support businesses hit by the virus lockdown. But it erased earlier gains as investors turned cautious amid reports of a violent face-off between India and China on Monday, during the Galwan Valley de-escalation process, resulting in casualties. Later investors set aside this fear and markets finally managed to recover. Going ahead, we expect the markets to remain volatile and in a consolidation mode for sometime, as investors would track global cues and development around India-China issues.
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