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

Equity market surged for the third straight session with Nifty ending higher by 0.3% at 22,908 level. Nifty Midcap100 and Smallcap100 witnessed strong buying interest, closing with gains of over 2.5% each. Key factors driving the market include FII buying of Rs1,463 crores into Indian equities after 17 continuous sessions of selling and softness in the US dollar index. Amongst sectors, there was a sharp rally in financial services, realty, PSU banks, healthcare and metal indices as investors indulged in value buying. However, the IT index slipped by 1% amid cautiousness ahead of the US Fed’s interest rate decision tonight. Investors will watch out for the FOMC commentary for further guidance. Shares of air conditioner and refrigerator manufacturing companies gained after the government exempted key components from mandatory BIS certification, easing supply concerns ahead of an expected harsh summer. Steel stocks were in focus after the Directorate General of Trade Remedies (DGTR) recommended the imposition of a provisional safeguard duty on Flat Steel Products. With positive indication from the FIIs and continued domestic buying, we expect the market recovery to continue in the near term.

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