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Below is the Daily Market Commentary 4th October 2021 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Indian equities rebounded after witnessing selling pressure for last four days ahead of RBI MPC meet and earnings season that is due to start this week. The indices ended the session with handsome gains supported by broader markets and rose around 1%. All the sectoral indices ended higher with realty, metal and power sectors rose ~2% each.

Global markets remained on back foot weighed by ongoing concerns over the health of property giant China Evergrande Group and ahead of an OPEC meeting. However, investors started the fourth quarter of 2021 on a cautiously optimistic note, thus capping the downside. Dollar stayed close to one-year highs on concerns that higher inflation, supply shortages would put global economic recovery at risk.

Domestic cues remain positive as economic activities gain further momentum but the elevated valuations along with multiple global concerns would keep markets volatile. RBI credit policy and TCS quarterly results due on 8th September (Friday) are the two key events which will be widely tracked. RBI is expected to maintain its policy rates but it may lay the roadmap for stimulus tapering in line with other central banks. TCS would mark the start of Q3FY22 earnings season which is expected to continue the strong earnings momentum.

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