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Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, MOFSL

Benchmark index Nifty managed to close flat at 23,689 (-0.1%), post a sharp decline during the day on account of a four-year low GDP estimate for FY25 and persistent foreign fund outflows. India’s GDP growth is projected to slow to 6.4% in FY25, as per government data released on Tuesday. This marks the weakest GDP growth since the pandemic year of 2020-21, which saw a contraction of 5.8%. Weak global cues and stronger-than-expected US jobs data which dampened hopes of an early rate cut by the Federal Reserve, further pressured domestic equities. Selling was seen in the broader markets, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling over 1.5% each. Indian EMS stocks faced sell-off, tracking losses on the tech-heavy Nasdaq Composite index due to their exposure to the technology sector. IT stocks to be in focus as Tata Consultancy Services (TCS) is set to kick-start the Q3 earning season with its results tomorrow. While revenue for the IT giant is expected to remain impacted by furloughs, client-specific challenges are likely to normalize in 3Q. Its EBIT margin may improve, driven by talent development, training, and operational efficiency. Rising crude prices led to buying interest in upstream oil & gas companies. US markets will remain shut on Thursday on account of National Day holiday. We expect Indian markets to remain range-bound with stock/sector specific action on the back of upcoming Q3 results.

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