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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 markets witnessed a sharp fall, tracking the global sell-off sparked by the US reciprocal tariffs and China’s announcement of retaliatory tariffs of 34% on US goods. The US indices S&P 500 and Nasdaq were down by 6% on Friday, while Japan’s Nikkei 225 and China's Shanghai composite index ended with losses of over 7% each today. At the market opening, Nifty50 tanked 1,150 points or 5% to 21,758 — its worst opening since March 2020 (COVID-19 pandemic). This marked the sharpest single-day fall since June’24, when the indices had plunged more than 8%. Market showed some recovery towards the end of the session, with Nifty ending 726 points lower at 22,178 (-3.2%). Nifty Midcap 100 and Nifty Smallcap100 indices too witnessed heavy selling pressure, declining by 3.5% and 3.8% respectively. The Indian markets were relatively better placed compared to the Asian peers on account of lower tariffs and less reliability on US exports. Amongst sectors, the Metal Index plummeted almost 7% on US-China trade war escalation with Beijing imposing export restrictions on some key rare metals. Nifty IT index ended with over 2% loss, after touching a fresh 52-week low of 30,919 during the day. In just three sessions, the index tumbled over 8% as investors have turned risk-averse amid concerns of a likely recession in the US, India’s largest export market for tech services. Shares of Oil Marketing Companies (OMCs) declined as the Indian Government announced a hike in the excise duty on Petrol and Diesel by Rs2/litre.  Overall, we expect the market to remain volatile on the back of ongoing global trade tension and potential further developments on the US tariff front.

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