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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 ended with a loss of 158 points at 25,062 (-0.6%) as earnings volatility weighed on investor sentiments; even as the India-UK free trade agreement to be signed on Thursday, is expected to provide a significant boost to foreign trade. Moreover, intensifying FII selling with outflows of over Rs26,000cr in July so far, has further added to investor concerns. Broader market showed weakness with Nifty Midcap100 and Smallcap100 down by 0.6% and 1.1% respectively. IT stocks witnessed sharp decline with Nifty IT down over 2%, after mid-cap players Coforge and Persistent reported weaker than expected quarterly results. Additionally, lingering uncertainty around the India-US trade deal further weighed on the sector. In contrast, Nifty PSU bank index gained 1.2% on the back of strong Q1 results from Canara Bank and Indian Bank. Overall, we expect Indian markets to remain range-bound, with stock/sector specific movements driven by Q1 earnings outcome. Meanwhile, global developments including formalisation of the UK FTA and updates on the India-US trade deal, will be closely tracked by market participants.

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