IGI Logo

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

Indian equities faced intense selling pressure amid concerns regarding the outbreak of HMP Virus and sharp fall in banking stocks post lacklustre quarterly updates. Diagnostic stocks were in focus as the first two cases of HMPV were detected in Bangalore. Nifty 50 closed with loss of 389 points at 23,616 (-1.6%). There was broad-based sell-off in the market with midcap and smallcap indices falling between 2-3% each and all sectoral indices closing in the red. Foreign Institutional Investors (FIIs) sold Indian equities worth Rs 4,227 crore on Friday. The Indian rupee slipped to an all-time low of 85.82, pressured by persistent demand for US dollar. On the domestic macro front, India’s service PMI rose to a four-month high of 59.3 in December compared to 58.4 in the previous month. In the capital goods sector, order inflows are anticipated to rise from 4QFY25 onwards. Defence sector ordering is also expected to ramp up based on recent approvals. We expect markets to remain volatile until concerns relating to the new virus ease out. We could see  stock/sector specific action on the back of pre-quarterly business updates and the start of the Q3 result season.  

Above views are of the author and not of the website kindly read disclaimer