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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 experienced some selling pressure on Monday following last week's rally. Nifty fell 60 points (-0.2%) to close 24,619. Consumer stocks weighed heavily on the market, with the Nifty FMCG index declining by 2%. This drop followed Godrej Consumer's mid-quarter business update, which highlighted weakening demand and margin pressures. However, IT and metal stocks offered some support. The broader markets outperformed, with the Nifty Midcap100 and Smallcap100 indices rising by 0.5% and 0.2%, respectively. Rising oil prices, driven by tensions in the Middle East, and cautious sentiment ahead of key economic events, such as the CPI data from India and the U.S. and the ECB policy meeting this week, influenced market sentiment. Expectations of stimulus measures from China spurred buying interest in capital goods and metal stocks, with the metal index gaining 0.6% and the capital goods index adding 1%. Looking ahead, the U.S. CPI data, due on Wednesday, and India’s CPI data, scheduled for Thursday, are key macroeconomic indicators to watch. We expect the market to remain range-bound with a positive bias, supported by intermittent FII buying and news flows related to government spending.

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