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Below is the Daily Market Commentary By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Equity markets closed on a weaker note on the last trading day of FY21 with Nifty losing 154 points (-1.04%) to 14,691 while Sensex fell 627 points (-1.25%) to 49,509. Nifty MidCap 100/Nifty Smallcap closed positive +0.4% each and outperformed Nifty. Overall for FY21 while Nifty gained +71%, Nifty Midcap / Smallcap sharply outperformed with gains of +102% /126% respectively. Tata Steel, Grasim, UPL, Bajaj Finserv and ITC were the top gainers in Nifty up 1.5% to 2.3% whereas HDFC, HDFC Bank, Power Grid, TechM and Coal India were the top losers in Nifty down 2% to 4%. Private Banking was the worst hit sector today - down 1.9% led by HDFC bank which was down 3.8%. IT, Infra, Energy and Auto were the sectors which closed in red whereas Pharma, Consumption, Metals, PSU Banks, Realty and FMCG were few sectors that closed in green.

Global cues were flat as the Euro zone inflation jumped to 1.3% in March from 0.9% in Feb. European markets were trading flat as the investors focused on prospects of faster vaccine progress in the U.S. Private payroll data will also be released giving the indication on the state of the health of the US economy. All eyes will be on US President  who is due to deliver a speech on Wednesday unveiling his new $3 trillion infrastructure plan as part of his "Build Back Better" agenda. Also OPEC+ countries are set to meet on Thursday amid concerns about extended lockdowns in Europe and volatile oil prices throughout March.

Domestically, markets opened on a weaker note on the last trading day of FY21 and closed down over 1% led by selling in Banking and IT stocks. Some of the Stocks that were in strong momentum were Tata Steel, UPL, Tata Motors and ITC. Metal stocks continued to witness buying for 3rd consecutive day. Technically, Nifty formed a Bearish belt hold sort of a candle and also formed an Inside Bar as it traded inside the trading range of the last session. Now, it has to cross and hold above 14750 zones to witness an up move towards 14900 and 15000 zones while on the downside support exists at 14600 and 14500 levels.

Indian markets are likely to track global cues in this truncated week of trade. Also with the financial year ending, investors would now focus on upcoming quarterly results which would kick start from mid-April. Domestically, concerns over the fast spreading 2^nd wave of covid in India continues to remain and the fear of possible lockdowns prevail. Overall markets are likely to remain in a consolidative mode for some time awaiting for fresh positive triggers. Hence investors would do well by gradually accumulating good quality companies on any declines in the market.“

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