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Below the Daily Market Commentary On 29 January 2024 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd 

Domestic market started the week on a buoyant note with renewed buying seen in Index heavy weights. Sentiments got a boost following stimulus announcement from China and hope of favorable Union Budget. In addition, US data raised hopes of an early interest rate cuts by the Federal Reserve. Nifty opened higher and gained strength throughout the session to close near days’ high at 21737 levels with rally of 385 points (+1.8%). Even broader market participated with Midcap100/Smallcap100 up ~1.5% each. All the sectors ended in green except for FMCG which was marginal loser. PSUs, Energy, PSU Banks and Infra were major gainers with gains of 2-5%. Energy stocks rallied 5% as power demand continues to remain high while crude oil prices climbed back above $80 due to supply concerns following Houthis continuous strike in the Red Sea. This week two important events are scheduled for Thursday - Interim Budget and US FED meeting which could induce some volatility. India ViX has jumped 13% to 15.68 level. However, Budget is largely expected to be non-event with no major announcement expected, but the hopes have risen for rate cut indication in this monetary policy meet. After last week consolidation, Nifty has regained momentum which is expected to continue ahead of budget.

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