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

Equity markets globally were jittery with Nikkei, Taiwan, and Kopsi down 14%/9%/9%. Following its global peers, Nifty opened gap down and corrected more than 800 points during the day. The index closed with a loss of 662 points (-2.7%) at 24056 levels. Volatility index, India VIX rose by 42% to 20 levels, indicating fear among investors of the economic slowdown.

Going forward, we expect volatility to continue ahead of RBI Policy and multiple global headwinds, including the unwinding of Yen carry trades, recession fears in the US, and escalating tensions in the Middle East. US slowdown is a bigger concern and sooner or later US Fed will bite the bullet of interest rate cuts which should provide relief in the current environment.

India stands strong with the support of Healthy macros, strong participation from domestic retail and institutional investors, and inline Q1FY25 numbers so far. The combination of ~7% GDP growth and ~15% Nifty earnings CAGR in FY24-26, stable currency, moderating inflation, and buoyant retail participation may keep sentiments strong. Further, the Valuation for Nifty is comfortable near its 10-year average at 21x one-year forward P/E. hence we believe that any correction in Indian equities should be an opportunity for long-term investors to accumulate good quality stocks. 

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