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

Equity markets witnessed a pullback on Tuesday, with the Nifty50 slipping 0.7% to close at 24,826 after a highly volatile session. The weakness was largely attributed to nervous global cues, mounting concerns over trade tensions, and rising anxiety around the ballooning US debt levels. The upcoming F&O expiry further added to the choppiness, prompting some intraday profit booking. Broader markets, however, showed relative stability, with the Nifty Midcap100 and Smallcap100 indices closing with marginal gains of 0.15% and 0.10%, respectively. On the sectoral front, action remained selective—only Nifty Defence, Realty, Pharma, and PSU Bank indices managed to close in the green, while all other sectors ended in the red, reflecting the cautious sentiment. India and the US are actively negotiating an interim trade agreement, with a US delegation expected to visit New Delhi soon. Both sides are targeting a resolution before July 8th, when the 90-day extension of US reciprocal tariffs expires. Meanwhile, in a positive development, the Indian Meteorological Department (IMD) announced that the arrival of southwest monsoon over Kerala on May 24—the earliest onset since 2009—providing early relief and boosting expectations of a good agricultural season ahead. Investors are now eyeing key global events, including the release of the minutes from the latest FOMC meeting, which could provide cues on the Fed’s policy outlook amid persistent inflation and fiscal stress. Markets are likely to remain volatile in the near term, with a watchful eye on global developments, trade negotiations, and remaining corporate earnings.

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