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Below the Quote on Daily market commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd

Nifty50 witnessed a fall of 204 points to close at 24,610 (-0.8%), following weak cues from the US market. All three major Wall Street indices posted their biggest daily losses in a month on Wednesday. This resulted from a surge in US Treasury yields over concerns that President Trump's proposed tax cuts could sharply increase government debt. There was broad-based selling in the Indian market, with Nifty Midcap100 and Smallcap100 indices ending with loss of 0.5% and 0.3% respectively. All sectoral indices ended in the red with FMCG and IT being the weakest performers, ending with loss of over 1% each. IT stocks suffered due to Moody’s recent downgrade of US credit rating and economic concerns over the proposed US tax bill. In a positive development on the domestic macro front, India’s Composite PMI climbed to a 13-month high of 61.2 in May, compared with 59.7 in the previous month. This represents the fastest rate of month-on-month growth since April 2024, mainly propelled by a surge in service activity. Investors will look forward to the US Manufacturing and Services PMI data to be released later today. Both FIIs and DIIs were buyers to the tune of Rs2200 crore and Rs680 crore respectively on Wednesday, offering some relief to investors amid weak market sentiment. Meanwhile reports suggest that India and US may announce an interim trade agreement before July 8, with India seeking full exemption from the additional 26% tariff on domestic goods. While the global cues are weighing on Indian markets, optimism over the US-India trade settlement and positive domestic macros are likely to keep the markets range-bound.   

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