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Below the Daily Market Commentary By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Nifty opened gap down and remained under pressure throughout the session to finally close with loss of 183 points (-0.8%) at 22704 levels. Weak global cues along with uncertainties surrounding election outcome seemed to have led to this sharp fall over last 14 trading sessions. However broader market did not bear the brunt and ended on a mixed note. On the sectoral front, Banking & Financials largely dragged the market as Rating agency CRISIL expects bank credit growth to moderate from 16% in FY24 to 14% in FY25 on high base effect and slower pace of GDP growth. Pharma and Metals were the only sectors to end in profit. Defense and Ship building stocks too saw  buying interest post the media news that India and France meeting is scheduled for tomorrow for discussion over Rs 50,000 crore deal for 26 Rafale Marine fighter jets. The better than expected consumer confidence data along with hawkish commentaries from US Fed officials led to surge in US treasury yields to 1-month high at 4.55%. All eyes will be now on Core PCE data which is elementary for US Fed’s interest rate decision. On the domestic front, though FII selling intensity has reduced, the caution is increasing as we near the big event outcome which is resulting in profit booking. The volatility is expected to heightened in coming sessions, thus its advisable to traders to stay on sidelines and not get too aggressive. The weak global cues are further adding to the nervousness and thus markets are likely to remain weak in near future.

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