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

Indian equity markets demonstrated resilience despite several headwinds, with Nifty50 closing with gains of 130 points (+0.5%) at 24,813, recovering from a sharp 261 point (-1.1%) fall on Tuesday. Global markets declined overnight on escalating Israel-Iran tensions, US growth concerns, and reduced hopes for a Fed rate cut. Broader markets also participated in the recovery, with Midcap100 and Smallcap100 indices gaining 0.8% and 0.4% respectively. Nifty Realty (+1.7%) and Pharma (+1.3%) led sectoral gains. Globally, Brent crude jumped 2% to over $66/bbl amid reports of a potential Israeli strike on Iranian nuclear facilities, adding to geopolitical concerns. Fed officials maintained a hawkish stance, dampening near-term rate cut hopes and warning of a sustained tariff-driven inflation. UK inflation also came in higher at 3.5% YoY, the highest in over a year, potentially impacting the Bank of England's next rate decision. Domestically, India's core sector output grew a modest 0.5% in April'25, an 8-month low, signalling a moderation in industrial activity. FIIs were net sellers of ~Rs 10,016Cr on Tuesday, further weighing on sentiments. Looking ahead, we expect markets to remain firm, supported by healthy domestic macros, decent corporate earnings, and prospects of an above-normal monsoon this year. Institutional buying in broader markets should provide further support. Key earnings due Thursday include ITC, Sun Pharma, Grasim, CONCOR, and GMR Airports.

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