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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 equities ended with strong gains, recovering some of the losses from the previous trading session. Nifty 50 rallied 1.7% to close at 22,536 level, tracking gains in the Asian markets following a recovery in US equities. Broader market reflected positive investor sentiments as Nifty Midcap100 and Smallcap100 indices gained over 2% each. Amongst sectoral indices, Financial services was the top gainer, rising over 3% on optimism over RBI policy outcome tomorrow. The PSU bank index also added 2.6% as the RBI is expected to cut interest rates by 25 basis points. Additionally, the decline in the 10-year bond yield to a two-year low, coupled with strong quarterly business updates from some of the PSU banks should augur well for these stocks. Shares of oil marketing companies (OMCs) surged, lifted by the government's decision to raise the price of household LPG by INR 50. The OMCs are expected to recover around Rs9,000 crore in FY26 through this hike which will partially offset their ongoing losses. Jewellery sector stocks gained after strong Q4 business updates, fuelled by strong wedding demand and rising gold prices. Market is expected to remain volatile until things become clearer on US tariff front, while stock specific action would continue on the back upcoming Q4 earnings and management guidance. We suggest investors to avoid globally exposed sectors like IT, pharma, metals and rather focus on domestic economy-linked stocks as they are likely to offer relative stability in the current uncertain environment.

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